Chevron CEO Warns Iran War Fuel Crunch Will Raise Airfares And Cut Flights
Chevron CEO Mike Wirth warned Sunday on CBS's Face the Nation that a fuel crunch tied to escalating tensions with Iran will push up airfares and prompt airlines to cut flights in the coming weeks.
Wirth said tightening supplies of jet fuel and rising crude prices are already pressuring airlines' operating costs. He said carriers will likely pass those costs to travelers and trim schedules to protect margins.
The episode traces back to months of rising tensions in and around Iran that have tightened global oil markets. Higher crude prices, shipping risks and insurance costs have all made fuel more expensive and less predictable for suppliers.
Airlines operate on thin margins and fuel is one of their largest expenses. Expect carriers to adjust fares and capacity in the short term until fuel markets calm and supply stabilizes.
đ Key Facts
- Chevron CEO Mike Wirth told CBS that aviation is likely to see worsening price and capacity impacts in the next few weeks.
- He cited rapidly tightening jet fuel supplies in Europe and Asia, with airlines already cutting routes and raising fares.
- IATA data show North American jet fuel prices up more than 80% year over year; U.S. gasoline averages $4.03 and diesel $5.47 per gallon.
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