US-Israel war on Iran: From Air India to SpiceJet, AirAsia — list of airlines hiking fares, fuel surcharge
The United States and Israel launched airstrikes on Iran on February 28, targeting Iran’s naval and military forces and killing many of its senior leaders, including former Supreme Leader Ayatollah Ali Khamenei. Tehran’s retaliation has plunged the Middle East into a renewed military conflict and rattled global energy markets and the aviation industry.
Thousands of flights have been canceled over the past two weeks due to ongoing airspace restrictions; Many airlines in Asia and Europe are now announcing fare hikes and fuel surcharges as the war in Iran causes sharp fluctuations in oil prices and raises concerns about possible jet fuel shortages if the conflict escalates further. Bloomberg reported.
Additionally, the increasing demand for alternative routes to Europe bypassing the Middle East region is pushing ticket prices even higher. More than 43,000 flights scheduled to and from the Middle East between February 28 and March 10 were reportedly cancelled.
Here is a list of airlines increasing fares and fuel surcharges:
AirAsia: Southeast Asia’s largest budget carrier announced it will raise fares and adjust fuel surcharges; but how much was not stated. AirAsia said it would “dynamically monitor market conditions and react proactively when necessary.”
Air India: On March 10, Air India announced that both Air India and Air India Express will revise fuel surcharges in phases from March 12. Fuel surcharges on domestic and international flights.
- Starting today, an additional fee will be charged initially. ₹399 domestic flights and services will be added to South Asia, West Asia and the Middle East. Surcharges for Southeast Asia will increase from $40 to $60, and for Africa from $60 to $90.
2. In the second phase, starting from March 18, the surcharge will increase from $100 to $125 for Europe and from $50 to $200 for North America and Australia.
3. Additional fees for Hong Kong, Japan and South Korea will be announced later as part of the third phase.
Air New Zealand: The airline on Tuesday said it was increasing fares by an unspecified amount and would likely take further pricing actions as it adjusts its network and schedule if fuel costs remain high. Air New Zealand also suspended its earnings guidance, saying assumptions about fuel costs announced late last month were no longer valid.
Hong Kong Airlines: The airline has increased fuel surcharges on select routes, including a 35% increase or HK$100 ($12.80) to the Maldives, Nepal and Bangladesh from March 12. The surcharge on long-haul routes such as Australia and North America will increase by HK$150, bringing the total tax to HK$739.
Japan Airlines: Japan Airlines, which already charges fuel surcharges on international routes, said it does not plan to adjust those taxes before April 1.
Qantas: Australian carrier Qantas is increasing fares on international routes by an average of 5%. Flights on European routes including Perth-London, Perth-Paris and services via Singapore are operating at over 90% capacity this month, compared to the typical load factor of around 75% this time of year. Bloomberg reported.
SpiceJet: Ajay Singh, founder and founder of SpiceJet, said airlines will have no option but to impose fuel surcharge. He called on the government to cut taxes on jet fuel, warning that even oil prices of $90 a barrel were “completely unsustainable”. Singh added that SpiceJet may consider grounding aircraft if high oil prices continue and airlines may have to rethink their expansion plans under such conditions.
Jet fuel prices are rising
Prices for aviation turbine fuel (ATF), or jet fuel, have increased rapidly since the beginning of the conflict. According to Reuters, Air New Zealand said jet fuel prices, which were between $85 and $90 per barrel before the attacks, rose to between $150 and $200.
