Global airlines raise ticket prices and fuel surcharges as Iran war drives jet fuel costs to record highs, impacting travel worldwide.
Global Airlines Respond to Skyrocketing Fuel Costs
Airlines across Asia, Europe, and Oceania are feeling the pinch as the ongoing conflict in Iran sends jet fuel prices soaring. Many carriers, including Qantas Airways, SAS, and Air New Zealand, have increased fares, tacked on fuel surcharges, or reshuffled flight schedules to cope with the crisis.
Before the conflict intensified, jet fuel cost around $85 to $90 per barrel. Now, prices have nearly doubled, hitting between $150 and $200 per barrel, according to Air New Zealand. The airline even suspended its 2026 financial outlook, citing uncertainty over the war’s duration and its effect on operations.
Fuel Prices Surge as Conflict Disrupts Oil Routes
The Middle East war has disrupted a critical oil export corridor, driving up costs for airlines and putting pressure on ticket prices. “Increases of this magnitude make it necessary to react in order to maintain stable and reliable operations,” a spokesperson for SAS said, explaining their temporary price adjustments.
Some carriers, such as Lufthansa and Ryanair, had hedged part of their fuel requirements at fixed prices, offering a buffer against sudden cost spikes. Meanwhile, Air Canada revealed it hedged a small portion of short-term fuel needs to manage volatility but declined to comment on future fare hikes.
Finnair, which hedged over 80% of its first-quarter fuel, warned that a prolonged conflict could limit fuel availability, not just increase costs. Even major suppliers like Kuwait have reduced jet fuel output, further adding to uncertainty.
North American Airlines Prepare for Potential Hikes
WestJet confirmed that fuel remains the largest operational cost for airlines. “It’s likely further pricing adjustments may be needed,” the airline noted, emphasizing its monitoring of the situation and readiness to respond.
Airspace Disruptions Add to Operational Challenges
The Iran conflict isn’t only hitting wallets—it’s creating airspace chaos. On Tuesday, flights approaching Dubai were temporarily placed in holding patterns due to a potential missile threat, according to Flightradar24. Though the planes eventually landed safely, the disruption highlights the complexity airlines now face in scheduling and routing flights.
Qantas is exploring moving more flights to Europe, while Cathay Pacific plans to add extra flights to London and Zurich. Air New Zealand has already raised fares across multiple routes, and further adjustments may follow if jet fuel prices stay high. Hong Kong Airlines will increase fuel surcharges by up to 35.2%, and Air India has announced phased hikes on both domestic and international flights.
Meanwhile, some European carriers, such as British Airways, remain stable thanks to fuel hedging but have shortened their winter-season flights to Abu Dhabi due to ongoing uncertainty.
The war in Iran continues to ripple across the airline industry, affecting fares, flight schedules, and fuel availability, reminding travellers worldwide that geopolitical tensions can hit wallets as quickly as they hit the headlines.
