Bangladesh, May 23 -- John Mowry, managing director of Alton Aviation, described the energy crisis as the "first bump in the road" for aviation since the pandemic.

Jet fuel prices more than doubled after the Iran war began, triggering massive flight cuts and pushing Lufthansa CityLine and Spirit Airlines out of business. Jet fuel typically accounts for 30% of an airline's total expenses.

Before the conflict, Alton Aviation projected 5-7% global air traffic growth for the year. That forecast now requires adjustment depending on how long the conflict continues.

Mowry noted that airlines practicing effective fuel hedging are better shielded from cost increases and face less pressure to raise fares. Low-cost carriers focused on leisure tr...