Soaring jet fuel costs threaten Western Sydney Airport's growth plans
Jet fuel prices doubled since February's Iran conflict, forcing airlines to cut routes as Western Sydney airport opens.
High jet fuel prices are forcing airlines to trim routes and capacity. This creates challenges for Western Sydney International Airport as it tries to attract new carriers.
Jet fuel has soared from about US$85 to US$95 per barrel up to late February to around US$175 today. This was driven by escalating tensions between the US, Israel and Iran.
Qatar Airways, a key partner airline, reduced capacity from 170,000 daily passengers to about 145,000 and cut destinations from 180 to 170. Airlines across Asia-Pacific cut 387,000 seats in the week to October 19.
Capacity cuts mean flying smaller planes, less frequent routes, or retiring older aircraft. Transport Minister Catherine King said her office is watching airline costs closely.
Despite the headwind, Qatar Airways committed to three return trips to WSI per week next year, and Singapore Airlines will launch a daily service to Changi.
- US$85-95 per barrel
- Jet fuel price in February
- Around US$175 per barrel
- Jet fuel price now
- 170,000
- Qatar Airways daily passengers before
- About 145,000
- Qatar Airways daily passengers now
Why it mattersFuel-driven capacity cuts reduce competition on routes and can raise ticket prices for Australian travellers heading overseas.
AustraliaFewer airline routes and smaller planes on international flights from Sydney could mean higher fares and fewer travel options for Australian passengers.
✓ Claims checked against the source and corrected before publish. checked 2 d ago
