Several airlines in Asia and Europe have begun raising ticket prices and fuel charges following a sharp increase in the cost of aircraft fuel.
The geopolitical conflict in the Middle East has disrupted major air routes, forcing companies to change flight schedules and incur higher operating costs.
Among the companies that have announced ticket price increases are Qantas Airways, Scandinavian Airlines and Air New Zealand.
Air New Zealand reported that jet fuel prices have jumped from $85 to $90 per barrel to $150 to $200 per barrel since the United States (US) and Israel attacked Iran.
The uncertainty of this conflict has also caused the company to suspend its financial forecasts for 2026.
The disruption to these major oil routes has increased operating costs and depressed ticket prices on several routes.
A Scandinavian Airlines (SAS) spokesperson said that fuel increases at this level have forced the company to take immediate action to stabilize operations, including temporary price adjustments.
Lufthansa and Ryanair have found some relief through fuel hedging programs that lock in prices in advance.
However, Finnair, which hedged more than 80% of its fuel in the first quarter, warned that a prolonged conflict could disrupt not only prices but also global fuel supplies.
Flightradar24 reported that planes arriving in Dubai were forced to temporarily hover due to the threat of missile attacks before being allowed to land.
The airspace disruptions have forced airlines to reroute their routes and flight networks.
Cathay Pacific will increase flight frequencies to London and Zurich in March due to airspace closures, as well as capacity constraints that have pushed up fares on Asia-Europe routes.
Hong Kong Airlines has announced a fuel surcharge increase of up to 35.2%, while Air India has begun implementing a phased increase in fuel surcharges for domestic and international flights.
On the other hand, International Airlines Group (owner of British Airways) has not planned to raise fares due to its still strong fuel hedging position.
Oil prices surged to $119 a barrel on Monday before falling to around $90 a barrel after President Donald Trump said the conflict may soon end.
European airline stocks rose between 3% and 8%, but major US carriers such as Delta, United, Alaska and American Airlines fell between 2% and 4%.
Rising fuel costs and longer routes are clearly putting pressure on airlines' profit margins.
While demand for air travel remains strong, these cost pressures will weigh on an industry that has long relied on tight margins and high operational efficiency.
