A sharp spike in global jet fuel prices — driven by the ongoing U.S.‑Israeli military operation against Iran — is putting heavy pressure on airlines worldwide. Fuel costs have jumped from around $85–90 per barrel to $150–200, hitting an industry where fuel can account for up to a quarter of operating expenses.
Airlines across regions are reacting with fare increases, new fuel surcharges, suspended routes, and revised financial forecasts.
How airlines are responding
- Aegean Airlines expects a significant hit to Q1 results due to suspended Middle East flights and higher fuel costs.
- Air France–KLM plans to raise long‑haul fares, potentially adding €50 to round‑trip tickets.
- Air New Zealand raised prices in early March and withdrew its annual financial guidance.
- Akasa Air (India) introduced fuel surcharges of ₹199–1300 on domestic and international routes.
- American Airlines anticipates $400 million in additional Q1 expenses.
- Cathay Pacific increased fuel surcharges by 34% from April 1 and will review them bi‑weekly.
- Cebu Air is adjusting pricing and network strategy to offset rising costs.
- EasyJet warns European travelers will feel price increases by late summer.
- Frontier Airlines revised its annual outlook.
- Hong Kong Airlines raised surcharges by up to 35%.
- IAG (British Airways) is protected in the short term due to fuel hedging.
- IndiGo introduced new surcharges (e.g., ₹900 to the Middle East, ₹2300 to Europe).
- JetBlue increased baggage fees.
- Korean Air entered “emergency management mode.”
- Pakistan International Airlines raised fares by $20–100.
- SAS will cancel around 1000 flights in April.
- Spring Airlines (China) will raise domestic fuel surcharges.
- Thai Airways is increasing domestic fuel fees by 10–15%.
- SunExpress (Turkish Airlines/Lufthansa JV) will add a €10 temporary surcharge from May 1.
- United Airlines is cutting unprofitable routes and raising baggage fees.
- VietJet is adjusting flight frequencies due to potential fuel shortages.
- Vietnam Airlines will cancel 23 weekly domestic flights and is asking the government to remove the environmental fuel tax.
- Virgin Australia is raising fares.
- Greater Bay Airlines sharply increased surcharges on many routes.
Impact of the Iran conflict
The U.S.–Israeli military operation launched on February 28 disrupted airspace across the Persian Gulf, pushing oil and jet fuel prices sharply higher. Analysts warn the aviation sector may face a prolonged crisis. By late March, jet fuel prices reached $195 per barrel, nearly $100 more than before the conflict.
Source – https://www.unian.ua/
Photo collage by UNIAN, photos by Maryna Hryhorenko, ua.depositphotos.com
Author: Dmytro Petrovskiy