Fuel shock hits aviation: airlines hike fares, slash forecasts News Air Insight

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A surge in jet fuel prices, driven by the ongoing U.S.-Israeli war on Iran, has upended the global aviation industry, prompting airlines to raise fares and revise financial outlooks.

Jet fuel prices have soared from $85-$90 per barrel to $150-$200 per barrel in recent days for an industry where fuel accounts for up to a quarter of operating expenses.

Also Read: Emirates resumes flights to select destinations, asks passengers to check flight status before heading to airport

Below is a list of how airlines are responding, in alphabetical order:

AEGEAN AIRLINES

The Greece-based airline said on March ‌12 that it ⁠expects suspended Middle ⁠East flights and a sharp spike in fuel prices to have a “notable impact” on its first-quarter results.

AIR FRANCE-KLM

The French airline on March 12 announced plans to increase long-haul tickets ​prices to address surging jet fuel costs. It said cabin fares would rise by 50 euros ($57.32) per round trip.

AIR NEW ZEALAND

The airline was on ​March 10 one of the first to announce broad increases to ticket prices and also suspended its fiscal 2026 earnings forecast due to unprecedented volatility in global jet fuel markets.The price hikes for one-way economy fares are set at NZ$10 ($6) on domestic routes, 20 New Zealand dollars ​on short-haul international services and 90 New Zealand dollars on long-haul flights, with further price, network ⁠and schedule ‌changes possible if jet fuel costs remain elevated.

CATHAY PACIFIC AIRWAYS

The Hong Kong airline said on March 12 it ​would raise fuel surcharges ​on all routes from March 18, citing a doubling of jet fuel prices since the start of the ⁠month.

Earlier in March, the company noted it reviews fuel surcharges monthly and had kept ​them steady last month at $72.90 for flights between Hong Kong and Europe or North America.

CEBU AIR

The ​Philippines-based airline on March 13 addressed the ongoing crisis in the Middle East, citing a sharp rise in fuel prices as a key concern. It said it would persist in reviewing its pricing and network strategies to mitigate negative impact of escalating fuel costs.

HONG KONG AIRLINES

The carrier said it would raise fuel surcharges by up to 35.2% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal where charges will rise to 384 Hong Kong dollars ($49) from 284 Hong Kong dollars.

IAG

British Airways-owner IAG said on March ‌10 that it was not planning to hike ticket prices immediately, as it had hedged much of its fuel for the short- to mid-term.

PAKISTAN INTERNATIONAL AIRLINES

The Pakistan-based carrier said on March 12 it would raise domestic and international ​flight fares by $20 and ​up to $100, respectively, citing higher fuel surcharges.

QANTAS ⁠AIRWAYS

The Australian airline said on Tuesday it would hike fares on its international routes for the week of March 9 and that it was considering adding capacity on its existing Europe routes in the coming months.

SAS (Scandinavian Airlines)

The dominant airline in the Nordic countries said on ​March 10 that it had implemented a temporary price adjustment due to rising jet fuel prices.

THAI AIRWAYS

The Thailand-based carrier said on March 11 it would raise fares by 10% to 15% to address rising fuel costs.

UNITED AIRLINES

The airline’s CEO Scott Kirby said on March 6 that he expects a “meaningful” hit to the carrier’s first-quarter results from the surging fuel prices.

VIETNAM AIRLINES

The Vietnam-based airline said it had requested government assistance to remove an environmental tax on jet fuel, as operating costs for Vietnamese airlines have surged by around 70% due to jet fuel prices rise, according to local officials.



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