More airlines increase airfares as Iran war drives jet fuel price spikes

More Airlines Raise Fares Amid Rising Jet Fuel Costs Linked to Iran Conflict

Global Travelers Bear Brunt of Fuel Price Surge

Passengers are encountering higher ticket prices and fewer flight options as tensions in the Middle East escalate. The ongoing conflict has led to a sharp increase in oil prices, directly affecting the cost of jet fuel. Experts suggest that even if the war slows, elevated fares may persist for several months. Demand for routes that bypass the Middle East and Gulf regions has also intensified, contributing to the upward trend in air travel expenses.

Industry Responses to Fuel Hike

Several carriers, including Cathay Pacific, AirAsia, and Thai Airways, have implemented fare adjustments to manage rising operational costs. During a media briefing on Wednesday, Ronald Lam, Cathay Pacific’s CEO, noted that fuel prices this month are twice the average of the prior two months. The airline has updated its fuel surcharges, effective from 18 March, to reflect the surge in costs.

“The cost of fuel so far this month is double the average of the previous two months,” said Ronald Lam, Cathay Pacific’s chief executive.

AirAsia announced temporary fare increases on Thursday, with plans to revisit pricing as market conditions evolve. Thai Airways anticipates a 10% to 15% rise in airfares, while Qantas has adjusted prices across different routes. Scandinavian Airlines (SAS) introduced a “temporary price adjustment,” and Air New Zealand raised economy fares by NZ$10, NZ$20, and NZ$90 on domestic, short-haul, and long-haul flights respectively.

Flight Schedules Under Pressure

Disruptions in regional air services have led to schedule reductions and route realignments. Air New Zealand has cut services by 5%, canceling around 1,100 flights between March 16 and May 3, which will affect approximately 44,000 passengers. Other carriers, such as Finnair, ITA Airways, KLM, and Lufthansa Group, have suspended flights to Middle Eastern destinations, extending cancellations to April and September.

Wizz Air has halted Israel-bound flights until March 29 and paused services to Dubai, Abu Dhabi, Amman, and Jeddah from Europe. Non-European airlines like Delta, Cathay Pacific, and Air Canada have also modified their timetables. These changes are shifting demand toward alternative routes, further inflating costs for travelers seeking to avoid the region.

Cathay Pacific recently drew attention for offering business class return trips from Sydney to London at A$39,577 (€24,142) in April, highlighting the extent of price adjustments amid the crisis.