The continuing war in the Middle East is hitting economies around the world. One concern here in Hawaiʻi is the impact on the price of jet fuel — and that's already having some powerful effects in Asia.
If you have travel plans that involve airlines, donʻt be surprised if your ticket prices gain some altitude.
The head of the International Air Transport Association told Bloomberg that airline fares could jump about 9% — reflecting higher jet fuel costs.
Hong Kong-based Cathay Pacific is increasing fuel surcharges for consumers today. Other airlines, such as Australia's Qantas, are simply raising ticket prices.
The price of jet fuel has gone up around the world — but the Asia Pacific has particular vulnerabilities. China is usually a key regional supplier of jet fuel — sending it to locations from Southeast Asia to Japan and Australia.
But the Beijing government has stopped exports at least through the end of the month. The specific impacts vary — last year, Australia imported about a third of its jet fuel from China.
Vietnam imports more than two-thirds of the jet fuel it uses — mostly from China and from Thailand — which has also banned the export of jet fuel.
Reuters reports Vietnam is having trouble finding new suppliers. As a result, the government of Vietnam is warning that starting next month fuel supplies may get so tight that airlines may have to reduce their number of flights.
