Planning a trip in the coming weeks? You may need to budget a little extra, Cape {town} Etc reports.
South African airlines are warning passengers that the recent surge in global oil prices is beginning to filter through to airfares, with some carriers already adjusting pricing to offset rising fuel costs.
The warning comes as renewed instability in the Middle East continues to drive up the cost of aviation fuel, placing fresh pressure on an industry that has spent years trying to recover from the financial impact of previous fuel price shocks, as reported by Business Tech.
The latest price increases can be traced back to the conflict between the United States and Iran, which began earlier this year and disrupted one of the world’s busiest oil shipping routes.
The temporary closure of the Strait of Hormuz, a passage through which around 20% of the world’s oil supply normally travels, sent energy markets into turmoil. As supply tightened, Brent crude oil climbed above $100 per barrel in April, triggering sharp increases in fuel prices across South Africa.
While motorists have felt the impact at petrol stations, airlines have also been hit hard as the cost of Jet A1 aviation fuel surged.
Unlike petrol and diesel sold to consumers, aviation fuel prices fluctuate directly with international oil markets, leaving airlines exposed to sudden price swings.
FlySafair was among the first local airlines to react when oil prices began climbing earlier this year.
The carrier introduced a variable fuel surcharge in March, with the additional cost reviewed weekly according to movements in global fuel prices.
Initially, travellers paid an average surcharge of around R176, although some domestic routes briefly carried extra charges of approximately R830 during April, when fuel prices reached their highest levels.
Although those costs eased after a ceasefire briefly reopened the Strait of Hormuz in June, the surcharge never disappeared entirely.
With tensions escalating once again, FlySafair has confirmed the surcharge has increased, with passengers currently paying around R310, although that amount remains subject to change depending on jet fuel prices.
The airline told Business Tech that it still intends removing the surcharge once market conditions stabilise, but cannot commit to a timeline while uncertainty around the conflict remains.
Not every airline, however, is adding a separate fuel surcharge.
CemAir told the publication that it has chosen not to introduce an additional fee despite higher operating costs. Instead, the airline has adjusted its fare structure by reducing the number of lower-priced seats available on certain flights.
Chief Executive Miles van der Molen said travellers should expect ticket prices across the industry to move higher if fuel costs continue climbing.
He also warned that fluctuations in the rand’s exchange rate could place further upward pressure on prices.
Domestic airline LIFT says airlines are facing a delicate balancing act.
While higher fuel prices increase operating costs almost immediately, passing the full increase on to customers risks reducing demand for air travel.
According to LIFT Chief Commercial Officer Cilliers Jordaan, the latest spike in oil prices quickly reversed the brief relief airlines experienced earlier in July.
He told the publication that airlines generally prefer to absorb part of the additional cost where possible before gradually adjusting ticket prices, helping to avoid pricing themselves out of the market.
However, Jordaan noted that many carriers are still recovering from previous fuel price increases and have not yet fully recouped those earlier losses.
With oil markets continuing to react to geopolitical developments almost daily, there is little certainty over when aviation fuel prices will stabilise.
For South African travellers, that means domestic airfare prices could remain unpredictable in the months ahead.
While airlines are adopting different strategies to manage the pressure, the message across the industry is consistent: if fuel prices continue rising, ticket prices are likely to follow.
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Picture: Philip Myrtop / Unsplash
