Kuala lumpur: Airlines are being advised to reevaluate the profitability of their routes in light of fluctuating fuel prices, according to Alton Aviation Consultancy, a global advisory firm specializing in the aviation and aerospace sectors.

According to BERNAMA News Agency, Alton Aviation Consultancy has released a new industry whitepaper titled 'Fuel Savings Initiatives: A Framework for Airlines in a Volatile Environment.' The whitepaper emphasizes the importance of conducting a route-level fuel sensitivity analysis. This analysis should factor in various fuel price scenarios, timelines for price normalization, potential for fare increases, demand elasticity, the value of connecting traffic, and strategic significance.

Alton warns that routes currently deemed profitable could become marginal as fuel prices rise, whereas some might retain strategic importance due to factors like hub connectivity and premium traffic. The analysis aims to guide airlines on necessary capacity adjustments and broader fleet evaluations if elevated fuel prices persist.

The consultancy also suggests that airlines with diverse fleets need to evaluate their aircraft assignment and fleet allocation with a focus on fuel efficiency. This involves a detailed analysis of each route, considering demand, payload needs, airport constraints, and competitive dynamics, to determine the optimal aircraft deployment.

Alton highlights that while deploying newer, fuel-efficient aircraft on longer routes can maximize fuel savings, it is crucial to ensure these aircraft are assigned to routes where they will be most economically beneficial. Conversely, deploying larger aircraft on routes with low demand could lead to reduced yields despite lower fuel consumption per seat.

With rising fuel costs, airlines often look to offset expenses through increased fares or fuel surcharges. Alton advises that where demand is elastic, such strategies might reduce traffic and load factors. Therefore, airlines should assess the viability of their scheduling, especially on routes with multiple daily flights or marginal profitability. Consolidating frequencies can help maintain market presence while cutting down on fuel expenses.

Furthermore, Alton suggests that in situations where demand decreases but time-of-day coverage remains crucial, airlines might consider downgrading aircraft size while maintaining strategic flight timings.