Oil costs weigh heavy on already stretched airline costs

For the first time since November 2022, oil price per barrel has risen above $90, leading to a swathe of airline restating investor guidance for the third quarter. As the largest cost, airlines profitability can be determined by swings in oil price but this time they are being hit with higher fuel cost at the same time as maintenance costs are rising. For some airlines, production delays and AOG’s caused by well publicised engine issues, have led to higher lease costs to ensure capacity levels meet demand and this is only expected to worsen into early next year. This week,