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A surge in jet fuel prices fueled by the US-Israeli war against Iran has disrupted the global aviation industry and forced airlines to raise fares and revise financial outlooks. Here’s how airlines have responded so far this month:
AEGEAN AIRLINES: The Greek airline expects the suspension of Middle East flights and the increase in fuel prices to have a ‘significant impact’ on its first quarter results.
AIR FRANCE-KLM: The airline group said it plans to increase long-distance ticket prices to cover rising fuel costs, and cabin fares will increase by 50 euros ($57) per round trip.
WEATHER NEW ZEALAND: The airline was one of the first companies to announce large increases in ticket prices on March 10. It also suspended its full-year earnings forecasts due to volatility in the fuel market. Price increases for one-way economy fares are set at NZ$10 ($6) on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul flights; Further price, network and schedule changes will be possible if fuel costs remain high.
AKASA AIR: India’s Akasa Air said it will introduce fuel surcharges ranging from 199 to 1,300 Indian rupees ($2 to $14) on domestic and international flights.
AMERICAN AIRLINES: The US carrier said it expects a $400 million increase in first-quarter expenses due to the increase in fuel prices.
CATHAY PACIFIC: The Hong Kong airline said it will increase fuel surcharges on all routes from April 1, its second increase in about two weeks after the increase on March 18, and will review them every two weeks. The carrier, which reviews fuel surcharges monthly, last month kept them steady at $72.90 for flights between Hong Kong and Europe or North America.
CEBU AIR: The Philippines-based airline said the sharp rise in fuel prices is a major concern and will continue to review its pricing and network strategies to mitigate the impact.
EASYJETEasyJet CEO Kenton Jarvis said European consumers should expect higher ticket prices towards the end of summer, when current fuel conservation measures end.
GREATER BAY AIRLINES: Hong Kong-based Greater Bay Airlines said it will increase fuel surcharges on most routes as of April 1 due to increased fuel prices due to the Iran war, and will leave the fees unchanged on mainland China and Japan routes. The carrier said its surcharge for flights between Hong Kong and the Philippines will more than double.
FRONTIER AIRLINES: The US airline is revising its full-year forecast as fuel prices have risen significantly since it issued its outlook.
HONG KONG AIRLINES: The airline said it would increase fuel surcharges by up to 35 percent from March 12, with the sharpest increases on flights between Hong Kong and the Maldives, Bangladesh and Nepal, with charges rising from HK$284 to HK$384 ($49).
IAGBritish Airways owner IAG said on March 10 that it did not plan to raise ticket prices immediately because it had hedged most of its fuel in the short to medium term.
INDIGO: India’s largest airline said it will impose fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and 2,300 rupees for flights to Europe. The company is also lobbying the Indian government to lower fuel taxes, sources told Reuters.
JETBLUE AIRLINES: The US-based low-cost airline said it was increasing fees for optional services such as checked baggage due to ‘rising operating costs’. Luggage prices will increase by $4 or $9, the company said.
PAKISTAN INTERNATIONAL AIRLINES: The carrier said it would increase domestic fares by $20 and international fares by up to $100, citing higher fuel surcharges.
PHILIPPINE AIRLINES: The airline said it had sufficient fuel supplies to support planned operations but did not have visibility from May to June. Company president Richard Nuttall told CNBC that the Philippines may eventually consider measures such as rationing how much fuel airlines can buy, which several countries have already implemented.
QANTAS AIRLINES: The Australian airline, which previously said it would increase international fares, said it would add flights to Rome, Paris and Singapore on March 26. It said it is monitoring fuel security, fuel prices and demand and may make further changes.
SAS: Scandinavian airline says it will cancel 1,000 flights in April due to high oil and jet fuel prices. He said ‘several hundred’ flights were canceled in March. SAS, which has already increased flight prices, said that even if it tries to cover rising fuel costs, the price increase will still hit the aviation industry.
BAHAR AIRLINES: The Chinese airline said that it will increase fuel surcharges on domestic flights starting from April 5, and details will be announced later.
THAI AIRLINES: The Thailand-based carrier said it would increase ticket fares by 10 percent to 15 percent to cover rising fuel costs.
TURKISH AIRLINES, LUFTHANSA: SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it will impose a temporary fuel fee of 10 Euros ($11.46) per passenger on routes between Turkey and mainland Europe starting May 1. The surcharge will apply to bookings made on or after 1 April for departures on or after 1 May.
UNITED AIRLINESThe US airline will cut unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 by the end of 2027, CEO Scott Kirby said. Chief Commercial Officer Andrew Nocella said United was able to raise fares without significantly harming bookings in response to rapid increases in oil and jet fuel prices.
VIETJET: Vietnam’s budget airline said it was adjusting flight frequency on selected routes due to potential fuel shortages.
VIETNAM AIRLINES: Vietnam’s aviation authority said the carrier plans to cancel 23 flights a week on domestic routes starting in April, after the airline requested government assistance to lift an environmental tax on jet fuel.
VIRGIN AUSTRALIA: Virgin Australia said it was adjusting fares to reflect increasing cost pressures in the aviation sector, which it said were significantly exacerbated by the situation in the Middle East.
