Fuel prices influencing forecasts for tourism in 2027. | Photo: MDB
Andrew EdePalma24/10/2026 08:24
At a conference in Palma on Friday, the president of the Spanish Airline Association, Javier Gándara, said that, while airlines have scheduled more seats for the Balearics this winter compared with the 2025/2026 season, uncertainty surrounding fuel prices threatens forecasts for the coming summer.
Gándara warned that fuel costs represent a major source of uncertainty heading into the summer of 2027. While airlines currently benefit from hedging arrangements that mitigate the impact during the winter, this protection will gradually diminish. "We do not yet know to what extent the price increases, which the airlines will have to absorb, will be passed on to ticket prices, or to what extent they will instead erode profit margins."
This comes at a time when fares are primarily driven by supply and demand and within an economic climate of household disposable income that is increasingly constrained by inflation.
Another risk is that the decarbonisation of aviation could "end up turning air travel into a luxury accessible only to a few". The ALA president noted that airlines will also have to bear the costs of transitioning to less polluting fuels - a financial burden that will either be passed on to passengers or absorbed by the airlines through reduced profit margins.
Gándara pointed out that even the most affordable Sustainable Aviation Fuel currently costs up to four times as much as conventional jet fuel. While advocating a move towards a less polluting model, he called for a review to ensure that rising ticket prices do not undo decades of progress in making air travel more accessible to the general public.
He explained that airlines have been paying for their carbon emission allowances since 2012, adding that the real challenge lies in reconciling climate goals with the ability to travel at affordable prices. In island territories like the Balearics, where air travel is essential for connections to the mainland and abroad, the impact on accessibility is particularly significant.