Avelo CEO warns airfares may rise as fuel prices hit ‘uncomfortably high’ levels

Avelo Airlines founder and CEO Andrew Levy told FOX Business that surging fuel prices have climbed back to “uncomfortably high” levels.(FOX Business)
In an interview regarding its recent volatility, Levy pointed to higher fuel costs tied to the ongoing conflict in Iran as the latest challenge confronting the industry, citing sharp recent price increases.
According to the International Air Transport Association, the global average jet fuel price rose 9% from the previous week to $171.01 per barrel, reflecting mounting supply concerns after disruptions to shipping routes in the Middle East, as reported by Reuters.
An image illustrates the moment the CEO discussed the situation:

Avelo Airlines founder and CEO Andrew Levy told FOX Business that surging fuel prices have climbed back to “uncomfortably high” levels.

Levy, who previously co‑founded Allegiant Air and served as chief financial officer of United Airlines, emphasized that Avelo will ultimately must pass at least some of those elevated costs onto its customers.

“At the end of the day, we have to be able to pass these costs onto our customers,” he added.

Industry rivals echo the pressure; Ryanair CEO Michael O’Leary warned that airfares could rise “significantly” if oil prices remain elevated, per Reuters.

Despite the higher fuel bill, Levy maintained Avelo’s demand has stayed resilient, noting that the brand posted a very strong summer even with high fuel prices, and that future performance will depend on how oil behaves in the fall.

An accompanying photograph captures an Avelo Airlines aircraft waiting on a tarmac before departure.

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