President of the Syndicate of Travel Agencies Jean Abboud reassured travelers that “the rise in oil prices has not affected airfares, as fuel is not the only factor determining airline operating costs.”
He emphasized in a press release that “despite the continuing rise in oil prices, ticket prices will not be impacted until the cost of fuel increases by more than 25%. It is the International Air Transport Association (IATA), not the fuel companies, which decides on price increases, following requests from airlines to increase prices if the cost of any of the operational components, including fuel, rises.”
However, “The IATA only increases prices if the cost of one of the operational components rises by 25%,” Abboud reaffirmed.
Abboud also pointed out that with the start of the war on Gaza, insurance companies increased their prices for airlines operating in Beirut by 80%, yet ticket prices did not jump because insurance is also a component of the operational cost and constitutes a small percentage.
