Why the aviation industry’s next crisis has already taken off — Ahmad Ibrahim (opens original article in a new tab)

The aviation industry faces a crisis as fuel price volatility and the collapse of ultra-low-cost carriers like Spirit Airlines force a reevaluation of business models and pricing strategies.

• Spirit Airlines closed due to fuel price volatility and business model challenges
• Fuel hedging is criticized as a risky strategy that shifts price risk to timing risk
• Industry needs to adopt permanent capacity discipline, restructure short-haul routes, and implement pass-through pricing
• More airlines may fail as the industry faces prolonged Gulf conflicts, climate taxes, and peak oil concerns
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