Air travel prices likely to get worse in coming weeks, Chevron CEO says

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Washington — Chevron's main enforcement predicted travelers could spot hose fares emergence and less flights disposable successful the coming weeks, arsenic the standoff with Iran implicit the Strait of Hormuz continues to rattle planetary markets and thrust up the terms of fuel.

"We've seen immoderate upward unit connected gasoline prices now. I deliberation aviation is intelligibly an country wherever it's going to astir apt get worse implicit the adjacent fewer weeks," Chevron CEO Mike Wirth said successful an interrogation Thursday with "Face the Nation with Margaret Brennan."

"We are seeing pitchy substance tighten precise rapidly successful Europe, successful Asia, and we're seeing airlines denote adjustments successful their formation schedules. We're seeing it travel done into fares. I deliberation that's 1 of the archetypal places it volition beryllium felt astir broadly," helium said.

Wirth said determination was already a pitchy substance shortage successful definite parts of the satellite earlier the warfare with Iran began connected Feb. 28. Airlines person hiked their container cheque fees and cut routes since the commencement of the warfare successful effect to the crisis. Carriers based successful the U.S. are somewhat amended positioned than European airlines due to the fact that the U.S. produces its ain pitchy fuel.

"I deliberation the upward unit that they're seeing connected prices and the tightness successful the marketplace is apt to pb to further way optimization. And truthful flights whitethorn not beryllium arsenic abundant arsenic they different would person been. I deliberation planes volition astir apt beryllium much afloat than they would person been," Wirth said.

"And yes, fares — fares could beryllium higher," helium added.

In North America, pitchy substance prices person surged much than 80% compared with this clip past year, according to the International Air Transport Association.

The mean outgo of state nationwide was $4.03 per gallon connected Thursday, approaching astir a dollar much than the terms per gallon a twelvemonth ago, according to CBS News' terms tracker. Diesel, which powers trucks, boats and trains, has risen much rapidly than regular gasoline and was astatine $5.47 per gallon connected Thursday.

Watch much of the interrogation Sunday connected "Face the Nation with Margaret Brennan."

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