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Business News of Thursday, 26 May 2022


Airlines adopt cost-cutting measures as price of jet fuel soars

There has been a shortage in refined jet fuel globally There has been a shortage in refined jet fuel globally

Airlines around the world have had to resort to various cost-cutting measures, as the price of aviation fuel remains elevated.

Jet A-1 prices are up by around 30-40% in May relative to January, driven primarily by a shortage in refined product due to removal of Russian crude supply from the global market.

On the international market, jet fuel price ended last week up 1.1% selling at US$$176.3/bbl.

Yemesrach Alemayehu, Area Manager of Ethiopian Airlines, speaking to AviationGhana on the sidelines of the just-ended Ghana West Africa Business Award, noted that internal cost-cutting measures by the Addis Ababa-based airline has enabled it to remain profitable despite the impact of the rising fuel cost and the COVID-19 pandemic.

” We own our own maintenance facility, hotel, training academy and others. We are therefore able to cut cost in-house so as to better deal with some of these external shocks,” Ms. Alemayehu said.