High airfares may become new norm as jet fuel costs soar, says Asia-Pacific airline industry chief
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KUALA LUMPUR, Malaysia (AP) — High airfares could become the new norm as airlines contend with soaring jet fuel prices and mounting operating costs, the Association of Asia Pacific Airlines' chief said Friday.Wong Hong, director-general of the association grouping 18 airlines in the region, said carriers were trying to contain ticket prices while protecting their finances and avoiding fare increases that could drive passengers away.But the industry is operating in a substantially different cost environment from a year ago when jet fuel was about $80 a barrel, compared with around $180 currently, he said. Fuel accounts for a third of airline operating costs, making further price increases a threat to carriers' financial performance, he said.“I believe so,” Wong said after an AAPA conference when asked whether high airfares would become a lasting feature rather than a temporary adjustment. “We are living in completely different market conditions and a completely different cost environmen