Business
Travel Costs Surge by 35% As Airlines Slash Global Flight Frequencies
Rising global oil prices, fuelled by escalating tensions in the Middle East, are threatening the profitability of Air Mauritius and forcing airfares to record highs for local travellers.
The price of Brent crude has surged past the $115 mark, climbing as high as $119 on Monday—the highest level recorded since 2022.
This rally has caused the price of jet fuel, which typically accounts for 20% to 30% of an airline’s operating costs, to spike from a pre-conflict range of $85–$90 per barrel to between $150 and $200.
Impact on Air Mauritius
The national carrier faces a precarious situation. Having recently announced a net profit of Rs 1.1 billion for the first half of the 2025–2026 financial year—largely bolstered by lower fuel prices—the airline’s margins are now directly under pressure.
Analysts warn that if fuel costs remain at the higher end of the current projections, the company’s operational margins and cash flow will be severely squeezed.
The airline must now weigh the difficult trade-offs of increasing ticket prices, which risks losing passengers, or reducing flight capacity to stem losses.
While some global airlines utilise “hedging” strategies to lock in fuel prices, Air Mauritius remains wary of such practices following a past hedging operation that resulted in losses of approximately Rs 7 billion.
Soaring costs for passengers
Travellers in Mauritius are already feeling the impact of the fuel crisis. Shamal Travels, an agency based in Quatre-Bornes, reports that airlines are cutting flight frequencies to mitigate rising operational burdens.
Notably, Emirates has reduced its operations from three daily flights to just one.
The resulting lack of availability, combined with high fuel surcharges, has caused ticket prices to climb sharply:
| Route | Previous Price (approx.) | Current Price (approx.) |
| Barcelona (via British Airways) | Rs 60,000 – Rs 65,000 | Rs 90,000 – Rs 95,000 |
| Via Emirates | Rs 58,000 – Rs 60,000 | Rs 97,000 |
Destinations across Asia, including Malaysia and Thailand, have been similarly affected, with Istanbul seeing increased demand—and higher prices—as passengers pivot away from reduced Emirates capacity towards Turkish Airlines.
Industry advice: Book early and insure
Travel professionals are urging customers to secure bookings as early as possible to avoid further price hikes.
Agents note that some airlines, such as Hong Kong Airlines, have already implemented tax increases of up to 35%.
“Clients should position themselves quickly if an acceptable fare presents itself,” advised a spokesperson for Shamal Travels.
Furthermore, experts recommend securing travel insurance to protect against the high probability of delays or cancellations.
While some airlines, such as Emirates, are currently offering full refunds without service fees for certain changes, travellers who cancel for reasons other than those permitted may face administrative charges ranging from Rs 2,000 to Rs 5,000—a sum described by industry insiders as a small price to pay compared to the potential cost of rebooking at future inflated rates.
Source: l’Express
