Qantas fuel crisis nosedives as Iran war grinds on

The oil shock resulting from the US-Israeli war against Iran led to a serious aviation crisis. Since the conflict began on February 28, jet fuel prices have more than doubled, refinery production in Asia has collapsed, and airlines like Qantas are cutting routes or, in the case of America’s Spirit, going out of business altogether.

While jet fuel typically accounts for 25% to 35% of an airline’s total operating costs, Qantas has suffered from poor hedging and historical delays in switching aircraft to maximize executive bonuses.