Flying could become unaffordable as jet fuel prices jump by 70%

Travellers may be in for an airfare shock. Picture: iStock South African travellers must brace themselves for potential massive spikes in air ticket prices. This after Jet A1 fuel prices rocketed week on week with hikes of up to 70% at two of South Africa’s three major airports.

Cape Town International Airport and King Shaka International Airport in Durban have both hiked the cost of a litre of Jet A1 fuel. Airlink chief executive de Villiers Engelbrecht confirmed the increase. “Airlink was notified of increases in the Jet A1 fuel price at coastal airports earlier today,” he said.

“The fuel supply agreements are confidential, but I can confirm that the increases are in the region of 70% week-on-week.” Jet fuel prices at OR Tambo International had not increased dramatically by Tuesday afternoon, but airlines expect it to follow suit soon. “We are going to see a significant spike in pricing over the short term, especially for budget and leisure travellers,” said aviation analyst and industry commentator Shawn Mendes. South African Airways’ (SAA) Vimla Maistry said that the airline expects all fuel suppliers to adjust pricing.

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“Nationally, similar increases may be reflected by other service providers, but SAA remains committed to protecting customers from sudden cost burdens while maintaining competitive and responsible fares.” A typical budget one-way ticket between Cape Town and Johannesburg that may cost R1 500 today could see near-future flight prices land the same ticket at roughly 20-25% more, about R1 800 plus. On a return ticket that balloons to almost R700 in a single round trip. Engelbrecht said that fare increases are inevitable.

“Airfares will naturally increase. We adjusted our fares a week ago in response to the initial oil price shock and again on Monday, 9 March. Other than using financial instruments like hedging, airlines generally have two responses to such shocks: either fare adjustments or network rationalisation to reduce the airline’s direct variable costs. At this point, Airlink is only considering the former, but the situation is very fluid, and we are ready to respond from a capacity perspective if required.”

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