Increased Jet Fuel Costs Hit Global Airline Industry

Airlines around the world are grounding more planes to cope with the increases in jet-fuel prices. Global capacity for May has been reduced by about 3 percentage points, with all but one of the 20 largest airlines slashing flights, according to data compiled by analytics firm Cirium Ltd. Lufthansa is scrubbing 20,000 uneconomic short-haul flights from its European summer schedule to save on fuel. Earlier in the week, United Airlines slashed its full-year profit forecast due to higher fuel prices caused by war in the Middle East. Bloomberg's Benedikt Kammel breaks down the situation.