FACTBOX: Price hikes, outlook cuts - What airlines are doing as fuel costs surge

Jet Fuel Surge Forces Airlines to Raise Fares Amid Middle East Tensions

Rising jet fuel prices fueled by the U.S.-Israeli conflict with Iran are rattling the global aviation industry, forcing airlines to increase fares and revise financial forecasts.

Jet fuel prices have jumped from $85–$90 per barrel to $150–$200 per barrel in recent weeks, dealing a major blow to airlines, where fuel can account for up to 25% of operating costs.

Below is how major airlines are responding, listed alphabetically:

AEGEAN AIRLINES – The Greek carrier expects suspended Middle East flights and higher fuel costs to have a “notable impact” on first-quarter results.

AIR FRANCE-KLM – The airline group plans to raise long-haul ticket prices, increasing fares by 50 euros ($57) per round trip.

AIR NEW ZEALAND – The airline raised ticket prices on March 10 and suspended its full-year earnings forecast. One-way economy fares have increased NZ$10 ($6) on domestic flights, NZ$20 on short-haul international routes, and NZ$90 on long-haul services. Further changes may follow if fuel costs remain high.

AKASA AIR – India’s Akasa Air introduced a fuel surcharge ranging from 199 to 1,300 rupees ($2–$14) for domestic and international flights.

AMERICAN AIRLINES – The U.S. carrier expects first-quarter expenses to rise by $400 million due to higher fuel costs.

CATHAY PACIFIC – The Hong Kong airline will raise fuel surcharges on all routes from April 1, its second increase in about two weeks, and plans biweekly reviews.

CEBU AIR – The Philippines-based airline continues to review pricing and network strategies to offset the impact of soaring fuel prices.

EASYJET – CEO Kenton Jarvis warned that European travelers should expect higher ticket prices later this summer, as existing fuel hedges expire.

FRONTIER AIRLINES – The U.S. airline is reviewing its full-year forecast amid rising fuel costs.

HONG KONG AIRLINES – Fuel surcharges will rise by up to 35% from March 12, with the steepest increases on flights to the Maldives, Bangladesh, and Nepal.

IAG (British Airways) – IAG does not plan immediate fare increases, having hedged fuel costs for the short- to medium-term.

INDIGO – India’s largest airline will implement fuel charges on domestic and international flights, including 900 rupees for the Middle East and 2,300 rupees for Europe, while lobbying the government to reduce fuel taxes.

PAKISTAN INTERNATIONAL AIRLINES – Domestic fares will rise $20, and international fares by up to $100, reflecting higher fuel surcharges.

PHILIPPINE AIRLINES – The airline has sufficient fuel for scheduled operations but faces uncertainty beyond May–June. Measures such as fuel rationing may be considered in the future.

QANTAS AIRWAYS – The Australian carrier will add flights to Rome, Paris, and Singapore, monitoring fuel prices and demand for potential adjustments.

SAS – The Scandinavian airline will cancel 1,000 flights in April due to high oil and jet fuel costs, on top of previous fare increases.

SPRING AIRLINES – The Chinese budget airline will raise domestic fuel surcharges from April 5.

THAI AIRWAYS – The airline will increase fares by 10–15% to offset higher fuel expenses.

TURKISH AIRLINES / LUFTHANSA (SunExpress JV) – A temporary 10-euro ($11.46) fuel surcharge will apply to routes between Turkey and Europe from May 1.

UNITED AIRLINES – The U.S. carrier plans to cut unprofitable flights over the next two quarters as oil prices are expected to remain above $100 until the end of 2027. Fare increases have not hurt bookings significantly.

VIETJET – The budget airline adjusted flight frequency on select routes due to potential fuel shortages.

VIETNAM AIRLINES – The carrier will cancel 23 domestic flights weekly from April, seeking government relief from the environmental jet fuel tax.

VIRGIN AUSTRALIA – Fares are being adjusted to reflect rising fuel costs, which are exacerbated by Middle East tensions.

GREATER BAY AIRLINES – The Hong Kong-based airline will raise fuel surcharges on most routes from April 1, except for flights to mainland China and Japan. Charges for flights between Hong Kong and the Philippines will more than double.

Currency Conversions:

$1 = 0.8724 euros | 92.7040 Indian rupees | 7.8380 Hong Kong dollars | 1.7144 New Zealand dollars

-Reporting by Mireia Merino, Marleen Kaesebier, Bernadette Hogg, and Dimitri Rhodes; Editing by Matt Scuffham and Milla Nissi-Prussak/Reuters