It will take months for jet fuel prices and supply to normalize even the Strait of Hormuz will open and remain open, the chief of International Air Transport Association (IATA) said on Wednesday.
He noted that while crude prices dropped about 15% following recent announcements, restoring the global supply of jet fuel and other refined products needed more time, during his speech at the IATA World Data Symposium in Singapore.
He emphasized that the Middle East served as a critical part of the global supply chain, meaning the recovery would not happen in weeks despite the early positive effects on prices.
He recalled that there is an almost direct correlation between the oil price and ticket prices and the issue has always been how long does it take for industry's pricing action to be reflected in the actual revenues.
