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Fares soar as airlines ‘take advantage’ of oil shock

Larysa Harapyn
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⚡ Quantum Brief
Airlines are sharply raising ticket prices in March 2026 after a Middle East conflict triggered a sudden spike in global oil prices, threatening already thin profit margins. Industry expert John Gradek of McGill University warns that fuel cost surges directly endanger airline profitability due to historically low margins in the sector. The price hikes come as carriers struggle to absorb rising operational costs, forcing them to pass expenses to consumers amid volatile energy markets. Gradek highlights supply chain vulnerabilities, noting airlines lack short-term alternatives to offset fuel price shocks, exacerbating financial pressure. Travelers now face significantly higher fares as airlines prioritize financial survival over competitive pricing during the ongoing energy crisis.
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Watch: 'Margins in the airline business are very low, so when fuel prices jump that much, you are risking profitability'You can save this article by registering for free here. Or sign-in if you have an account.John Gradek, faculty lecturer of supply networks at McGill University, talks about the impact of the Middle East conflict on fuel prices and airline travel.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.

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