Higher Oil Prices Could Be an Existential Threat to Some Airlines

If you’ve had to fill up a car or truck with gas lately, you’ve probably taken note of (and, possibly, cursed) the rising price of gas. As is the case on the roads, so too is the situation in the sky, with the cost of jet fuel also rising. Earlier this week, Bloomberg News noted that things could get worse before they get better — which helps explain why demand for used EVs has been rising this year.

That isn’t the only way that higher oil prices are affecting different aspects of life, however. Writing at the Los Angeles Times, Caroline Petrow-Cohen took a wide-ranging view of the aviation industry, noting that some industry observers are concerned that the price of oil could eventually cause some airlines to cease operations entirely.

Among those concerned about the long-term forecast for some airlines is United CEO Scott Kirby, who compared the current moment to the early days of the pandemic, when air travel featured widespread disruption all over the world. “If these other guys make the same mistakes they made six years ago, and if the forecast about $175 per barrel is right, you’ll see airlines not survive,” he told the Times.

It’s worth noting here that Kirby has made ominous-sounding comments about the state of the industry in the past, including a grim prediction in 2023.

Why Plus-Size People Are Angry With Southwest Airlines

After ditching open seating, then doubling down with some of the most rigid seat enforcement in the skies, the airline’s loyal flyers are left wondering what, exactly, still sets it apart

The Times also noted that the overall effect on airlines could vary from region to region. As the trade organization American Petroleum Institute has pointed out, the west coast of the U.S. requires more imported fuel — something that could lead to higher prices from flights at airports in California than their counterparts in the eastern U.S. Higher prices could also drive down demand for flights, which could have repercussions across the industry.

Meet your guide

Tobias Carroll

Tobias Carroll lives and writes in New York City, and has been covering a wide variety of subjects — including (but not limited to) books, soccer and drinks — for many years. His writing has been published by the likes of the Los Angeles Times, Pitchfork, Literary Hub, Vulture, Punch, the New York Times and Men’s Journal. At InsideHook, he has…