Airline Profit Hopes Fade With $125 Oil as U.S. Mulls Ban
- Travel stocks drop as spike in crude could wipe out earnings
- Many carriers lack protection after pandemic punished hedging
In Europe, higher fuel costs will add to widespread flight disruption.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Airlines are seeing prospects for a strong profit rebound from two years of coronavirus turmoil rapidly slip away after the price of oil reached $125 a barrel on Monday.
An oil shock triggered by Russia’s war in Ukraine is the latest blow to carriers that have already had to cancel flights and reroute long-haul journeys to avoid shuttered airspace. The price of crude spiked after the U.S. said it would consider a boycott of Russian supplies.