Over the previous week, jet fuel prices have risen by 33 percent due to soaring oil prices, and analysts have predicted that these increased costs will be passed onto airline passengers in Norway.
“It means that someone has to pay for it (the increased cost). So it is likely that higher ticket prices and, potentially, routes that can no longer be counted on (to be sold out) will be temporarily closed,” Hans Jørgen Elnæs, an analyst with Winair, told financial media publication E24.
Elnæs said that among the routes that could potentially be scrapped are ones to Asian destinations that have to divert to avoid Russian airspace, which is closed to aircraft from Norway and dozens of other countries.
In a different interview with public broadcaster, NRK Elnæs said that customers would begin to see the rising fuel costs reflected on their ticket by the turn of the month.
“We have not yet seen any significant change in pricing with the airlines, but I am sure that there will be an increase in the price during March or the beginning of April,” Elnæs told NRK.
The fuel rises are set to impact airlines in Norway, particularly as some of the largest airlines in the country, such as Norwegian Air Shuttle, Flyr and SAS, don’t have a fixed price agreement on fuel, meaning they pay current market prices.
Norwegian Air Shuttle have said that rising fuel costs were likely to lead to higher overheads, but it hadn’t decided on raising ticket prices just yet.
“Ticket prices are always controlled according to supply and demand. We have not decided on a fuel surcharge now,” Eline Skari from Norwegian Air Shuttle’s press office told NRK.
However, even airlines that have secured fuel price agreements, such as Widerøe, have said that ticket prices will rise eventually due to increased costs.
“The sharp increase in oil prices will, in the long run, have to lead to an increase in ticket prices,” communications director Silje Brandvoll, communications director of Widerøe, told E24.