ITA Airways Maintains Flight Schedule Amidst Surging Jet Fuel Prices
ITA Airways Responds to Rising Jet Fuel Costs
Flight Schedule and Fuel Hedging Strategy
ROME, May 5 (Reuters) - ITA Airways has no plans to cut flights because of rising jet fuel prices, its chief executive said on Tuesday, adding that the group has 80% of its fuel needs covered for the rest of the year.
Ticket Price Adjustments
However, the Italian carrier owned by the Lufthansa group, is looking at increasing ticket prices this year between 5% and 10% to compensate for the surge in fuel costs resulting from the U.S.-Israeli war on Iran, CEO Joerg Eberhart said.
Impact of Jet Fuel Prices on Operations
"Fuel now costs twice as much as it did before the crisis. Jet fuel accounts for some 30% of our total costs. Without hedging we would have to increase prices by 30%, and this would be difficult," Eberhart told reporters in Rome.
Efficiency Improvements and Fleet Modernization
Technical Measures for Fuel Efficiency
He added that the company was also looking at increasing fuel efficiency through technical measures.
Fleet Renewal Strategy
As part of its current strategy, the carrier is also aiming to bring down the average age of its fleet, with more modern jets key to improving fuel consumption.
Reporting Credits
(Reporting by Giulia SegretiEditing by Gianluca Semeraro and David Goodman)
