CNN anchor Kristie Lu Stout has warned that air travellers face sharply higher fares due to the ongoing US-Israeli conflict with Iran.

She said that in shorts published officially on Thursday.

Kristie noted, economy class tickets on Cathay Pacific from Sydney to London jumped from USD 1,370 before the conflict to more than USD 2,000 now. On some days prices exceed USD 3,500. Jet fuel costs have more than doubled since Iran closed the Strait of Hormuz.

She said, global airlines had forecast record profits of USD 4,100 crore this year. That outlook is now under severe pressure. Carriers from Air New Zealand to Vietnam Airlines have begun cutting flights. Korean Air has shifted to emergency management. The president of the Philippines warned that grounding planes remains a distinct possibility.

China banned jet fuel exports to secure its own supplies. Chinese airlines added thousands of flights to Europe by bypassing the Middle East and using Russian airspace. But Kristie said that still, major carriers such as Air China, China Eastern and China Southern issued cautious outlooks. Fuel accounts for 35 to 38 percent of operating expenses for these airlines, according to international banking and finance institution the Hongkong and Shanghai Banking Corporation (HSBC).

One local Chinese carrier, Colorful Guizhou Airlines, plans to raise fuel surcharges five times on domestic routes from April 5, informed this CNN anchor.

Asia feels the impact hardest because the region relies heavily on oil and gas passing through the Strait of Hormuz. Higher fuel costs will spread worldwide from Asia to the United States. Airlines are expected to pass these extra expenses on to passengers.

Source: CNN