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Fuel Price Drop Doesn't Lower Ticket Costs

Fuel Price Drop Doesn't Lower Ticket Costs

Despite the decline in jet fuel prices, airfare remains high, as fuel costs account for about 31% of total airline operating expenses, with the remaining costs distributed among wages, maintenance, fees, and airports. The impact of the falling fuel prices is limited due to the continued increase in other cost components, as well as aircraft shortages and delivery delays, which reduce the capacity to expand operational scale. Airlines rely on dynamic pricing systems based on demand and market expectations, and fluctuations in fuel prices lead to delays in adjusting ticket prices until stability is achieved, which continues to pressure their profit margins.

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