Amid the ongoing Iran war, Chevron (NYSE:CVX) CEO Mike Wirth has cautioned that air travel costs could surge, and flight availability may dwindle.
Wirth, on Thursday, expressed that the conflict over the Strait of Hormuz is causing instability in global markets, leading to a rise in fuel prices. “We’ve seen some upward pressure on gasoline prices now. I think aviation is clearly an area where it’s going to probably get worse over the next few weeks,” he said on CBS’s Face the Nation with Margaret Brennan.
He also pointed out that the jet fuel market in Europe and Asia is tightening rapidly, compelling airlines to modify their flight schedules and hike fares. “We’re seeing it flow through into fares. I think that’s one of the first places it will be felt most broadly,” Wirth noted.
“And yes, fares — fares could be higher,” he said.
Wirth highlighted that a jet fuel shortage was already in effect in certain regions before the Iran war commenced on Feb. 28. In response, airlines have increased bag check …
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