Markets and Economy
Will Higher Oil Prices Affect Airlines?
With oil reaching its highest prices since 2014, airline profits are narrowing. Find out what that means for consumer and corporate travel into next year.
In the face of renewed sanctions on Iranian oil exports and accelerating trade tensions between the US and China, oil has had a volatile year. Now, prices sit at their highest level since 2014.
Rising oil prices may be most keenly felt among airlines, and the increasing fuel costs are typically passed on to passengers through fare increases and fewer cheap seats. Many are wondering whether higher oil prices are here to stay—and what that means for consumers and businesses in the long term.
In this report, J.P. Morgan’s Head of Oil Market Research, Abhishek Deshpande, and Lead US Airlines and Aircraft Leasing Equity Analyst, Jamie Baker, share their views on the outlook for oil prices and how this will impact the cost of air travel for the rest of the year and into 2019.
View the full article here.