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

Jet fuel prices have soared from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, a financial hit for an industry where fuel accounts for up to a quarter of operating expenses

Reuters
Reuters

16 April, 2026

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

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A surge in jet fuel prices driven by the US-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise their financial outlooks.

Jet fuel prices have soared from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, a financial hit for an industry where fuel accounts for up to a quarter of operating expenses.

Below is a list of how airlines are responding, in alphabetical order:

Aegean Airlines

The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a “notable impact” on its first-quarter results.

AirAsia

The Malaysian airline’s executives said the company had cut 10 per cent of flights across the group, with a surcharge of about 20 per cent on fuel in general.

Air France-KLM

The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros ($58) per round trip.

Air India

The Indian carrier said it would revise its fuel surcharge from a flat domestic surcharge to a distance-based grid. It said surcharges on international routes did not compensate for the exponential rise in fuel prices.

Air New Zealand

The airline said on April 7 it would slash flights through May and June and hike fares, having been one of the first to announce broad increases to ticket prices when the conflict broke out. It also suspended its full-year earnings forecast due to fuel market volatility.

Akasa Air

India’s Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.

Alaska Air

The US airline said it would increase fees for the first checked bag by $5 and by $10 for the second on its North American flights, as well as for its Hawaiian Airlines unit. It hiked prices for a third checked bag from $50 to $200.

American Airlines

The US carrier said it would hike checked baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag on domestic and short-haul international flights. It also trimmed certain benefits for economy passengers.

It had earlier said it expected a $400 million increase in first-quarter expenses due to fuel prices.

Cathay Pacific

The Hong Kong airline said it would cut some flight from mid-May until the end of June, cancelling about 2% of its scheduled passenger flights, while its budget airline HK Express was cutting around 6% of flights.

The carrier previously said it would hike its fuel surcharge by 34% across routes from April 1 and review them every two weeks.

Cebu Air

The Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.

China Eastern Airlines

The airline said it would raise fuel surcharges for domestic flights from April 5, with flights of 800km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800km.

Delta Air Lines

Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags in an attempt to offset soaring jet fuel costs, with an increase of $10 on first and second checked bags and a $50 increase on the third.

The US airline pulled all planned capacity growth for the current quarter and forecast profit below Wall Street expectations. Delta CEO said it would hold off on updating the full-year outlook given uncertainty over how long the fuel price spike would last.

EasyJet

EasyJet warned of a bigger half-year pre-tax loss of between £540m and £560m ($731 and $758m), including £25m pounds in extra fuel costs in March.

CEO Kenton Jarvis previously said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.

Frontier Airlines

The US airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.

Greater Bay Airlines

The Hong Kong-based company said it would raise fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes.

Its surcharge for flights between Hong Kong and the Philippines will more than double, the carrier said.

Hong Kong Airlines

The airline said it would raise fuel surcharges by up to 35 per cent from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284.

IAG

British Airways-owner IAG said in March it did not plan to increase ticket prices immediately, as it had hedged much of its fuel for the short- to medium-term.

Indigo

India’s biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of INR900 for flights to the Middle East and a charge of 2,300 rupees for flights to Europe.

The company is also lobbying the Indian government to cut fuel taxes, sources told Reuters.

JetBlue Airways

The US-based low-cost carrier said it was increasing fees for optional services such as checked baggage as it experiences “rising operating costs”. Baggage prices will rise by either $4 or $9, it said.

Korean Air

The South Korean carrier will enter emergency management mode from April, as rising oil prices weigh on costs, a source with knowledge of the matter told Reuters. The airline plans to implement phased response measures based on oil price levels, and step up company-wide cost efficiency to offset surging fuel costs.

Airline Operators of Nigeria

The Nigerian industry body warned that Nigerian airlines would suspend all flight operations from April 20 unless fuel prices are reduced, as it accused the country’s fuel industry association of artificially raising prices in a letter seen by Reuters.

Pakistan International Airlines

The carrier said it would raise domestic flight fares by $20 and international fares by up to $100, citing higher fuel surcharges.

Qantas Airways

Australia’s Qantas said it had delayed a planned A$150 million ($106 million) buyback and was raising its estimated fuel bill for the second half of 2026 to A$3.1 billion-A$3.3 billion, from a previous A$2.5 billion forecast.

SAS

The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices, after cancelling a “couple hundred” flights in March.

SAS, which had already increased flight prices, said that even if it tried to absorb the rising fuel costs, the price surge would still be a blow to the aviation industry.

Spring Airlines

The budget Chinese airline said it would raise fuel surcharges on domestic flights from April 5, with details to be announced later.

Southwest Airlines

The American carrier said it would hike checked baggage fees by $10 for the first and second bags, raising costs to $45 for the first bag and $55 for the second.

TAP

The Portuguese airline said its price hikes would partially mitigate the impact of fuel price changes on its revenue.

Thai Airways

The Thailand-based carrier said it would raise fares by 10% to 15% to address rising fuel costs.

Turkish Airlines

SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros per passenger from May 1 on routes between Turkey and Europe. The surcharge will apply to bookings made on or after April 1 for departures on or after May 1.

Turkish Airlines said on April 10 it had decided not to distribute any dividend from its 2025 net profit, opting to retain earnings to preserve cash.

T’way Air

The South Korean low-cost carrier said it planned to furlough some of its cabin crew without pay in May and June as part of measures to address the impact of the war.

United Airlines

The US airline is cutting unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said.

United has been able to raise fares without materially hurting bookings in response to the rapid increase in oil and jet fuel prices, Chief Commercial Officer Andrew Nocella said.

It is also increasing first and second checked bag fees by $10 for customers travelling in the US, Mexico and Canada and Latin America, it said in an e-mailed statement to Reuters.

VietJetAir

The Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.

Vietnam Airlines

The carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam’s aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.

Virgin Atlantic

The airline is adding fuel surcharges to fares but will still struggle to return to profitability this year, its CEO Corneel Koster told the Financial Times.

Virgin Australia

Virgin Australia said it expected an increase in jet fuel cost of around A$30 million-A$40 million for the second half of this fiscal year, and a 1% reduction in capacity in the fourth quarter.

The airline previously said it was adjusting fares to reflect rising cost pressures.

WestJet

The Canadian airline will add a C$60 ($43) fuel surcharge to some bookings and combine flights as costs soar, the Canadian Press reported.

Tabby secures wallet licence in the UAE, expands financial services offering

The UAE SVF licence further strengthens Tabby’s regulatory foundation, enabling it to build and launch financial products across the GCC on its own infrastructure

Neesha Salian
Neesha Salian

16 April, 2026

Tabby secures wallet licence in the UAE, expands financial services offering
Image: Supplied

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Tabby has been granted a stored value facilities (SVF) licence by the Central Bank of the UAE (CBUAE), authorising the company to hold customer funds and introduce a new suite of financial products, including spending accounts, cards and money management tools.

The licence marks a step in Tabby’s evolution into a full service financial services app in the UAE, where it already serves millions of customers.

It enables the company to embed everyday financial services including spending, sending and managing money into a platform customers already use.

Tabby has a BNPL licence in Saudi Arabia

Tabby now holds direct regulatory authorisation in its two largest markets. In Saudi Arabia, the company received its buy now pay later licence from the Saudi Central Bank (SAMA) last year and acquired Tweeq, a SAMA-licensed digital wallet.

The UAE SVF licence further strengthens Tabby’s regulatory foundation, enabling it to build and launch financial products across the GCC on its own infrastructure.

Hosam Arab, CEO and co-founder of Tabby, said: “Millions of people in the UAE already use Tabby for flexible payments. This licence lets us serve them beyond credit and build an experience that delivers what money should actually feel like.”

Iranian-linked cyberattacks have surged 8x across the Middle East

Middle East DDoS attacks jumped in March, with many GCC nations among key targets as cyber risks intensify

Gareth van Zyl
Gareth van Zyl

16 April, 2026

Iranian-linked cyberattacks have surged 8x across the Middle East

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Article Summary
Following heightened tensions, Iranian-linked cyberattacks, particularly DDoS, have surged eightfold across the Middle East. Experts urge organisations in the region to strengthen defences, as the campaign is organised, growing, and costly, with potential for escalation.

Iranian-linked cyberattacks surged sharply across the Middle East last month, with distributed denial-of-service (DDoS) incidents rising eightfold during the month, according to cybersecurity firm StormWall.

The data reflects a significant escalation in cyber activity following heightened geopolitical tensions from 28 February, when a joint US-Israeli military operation targeting Iran triggered a wider regional response.

StormWall said that between March 1 and March 20, the number of DDoS attacks recorded across its regional clients increased 8x compared to the same period in February, marking one of the sharpest spikes on record.

“The volume of DDoS traffic currently hitting the Middle East is unlike anything we’ve seen before — even during past periods of geopolitical tension,” said Ramil Khantimirov, the CEO and co-founder of StormWall.

“This is a highly organised, targeted, and growing campaign that will likely continue to escalate.”

UAE among key targets

The attacks were concentrated across a handful of countries, with:

  • Israel accounting for 36 per cent of incidents
  • The UAE at 21 per cent
  • Bahrain at 14 per cent

StormWall said the campaign initially focused on Israeli government and telecom infrastructure, before expanding to other Gulf states.

The most affected sectors included public sector entities, banking and telecommunications: industries seen as both operationally critical and symbolically important.

“If you have digital infrastructure in the region that isn’t properly protected, now is the time to act,” Khantimirov said.

“Over the coming months, we’re likely to see more attacks — and more powerful ones.”

Broader cyber risks emerging

Separate analysis from predictive cyber threat intelligence platform CloudSEK suggests the cyber threat may extend beyond short-term disruption.

The firm said in a new report this month that it too has seen an uptick in Iranian-linked cyber attacks.

CloudSEK is therefore urging organisations, especially those operating in the GCC and Middle East — and adjacent sectors supporting regional infrastructure — to take immediate defensive steps, including:

  • Patching exposed internet-facing systems linked to known exploited vulnerabilities
  • Auditing exchange, VPN, and web-facing infrastructure for compromise
  • Hunting for webshells, suspicious tunneling tools, and malware indicators
  • Rotating privileged credentials and auditing administrative access
  • Reviewing aviation, energy, telecom, logistics, and industrial environments for abnormal activity
  • Blocking known indicators of compromise and validating detection coverage against the malware families referenced in the report

The financial impact of cyber attacks are significant. The average cyber breach in the Middle East costs roughly $7m–$7.5m, placing the region among the most expensive globally for organisations hit by attacks, according to IBM Security data.

Globally, cybercrime is now estimated to cost around $10.5tn annually, a figure that continues to climb as state-linked and organised attacks accelerate, based on industry estimates from Cybersecurity Ventures and other market research.

Refinery fire hits Australia fuel output amid global supply shock

Viva Energy’s refinery supplies over half of the fuel in Australia’s second most populous state, Victoria, and a tenth of the country’s total demand

Reuters
Reuters

16 April, 2026

Refinery fire hits Australia fuel output amid global supply shock
An aerial view of the Viva Oil Refinery in Geelong on April 16, 2026 following an overnight fire with authorities warning of disruptions to domestic fuel supply. Image: Getty Images

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Article Summary
A fire at Viva Energy's refinery in Victoria, Australia, has disrupted petrol production amid existing fuel security concerns due to the Iran war. The government is working with Viva and exploring import options to mitigate potential price hikes. The incident highlights Australia's reliance on fuel imports and the importance of sovereign capabilities. The cause of the fire is under investigation.

A fire at the largest of Australia’s two oil refineries has hit petrol production, company and government officials said on Thursday, just as the nation faces pressure to shore up fuel security with the Iran war disrupting global supply.

State fire authorities said the blaze, which broke out at a 120,000 barrels-per day refinery run by Viva Energy on Wednesday night, had been brought “under control” at noon (0200 GMT) on Thursday.

The fire came at a bad time for Australia as it depends on imports for 80 per cent of its fuel needs and has been racing to replace supply disrupted by the Middle East conflict, which has driven up energy prices worldwide.

“This is not a positive development, but obviously there’s a long way to go in terms of working out just what the impact is,” Energy Minister Chris Bowen told Channel Nine.

Viva Energy’s refinery supplies over half of the fuel in Australia’s second most populous state, Victoria, and a tenth of the country’s total demand.

The company said it expects output of petrol and aviation gasoline will be affected, but it will meet fuel demand through imports.

The plant is still producing jet fuel and diesel but at reduced levels for safety reasons, Bowen said.

“I would expect we’d see a price hike depending on the scale of the damage, and secondly, it reinforces the challenges we have in terms of sovereign and resilient capabilities here,” Australian Strategic Policy Institute analyst John Coyne said.

The incident comes as Prime Minister Anthony Albanese visits Kuala Lumpur on Thursday to discuss securing fuel supplies with his Malaysian counterpart, Anwar Ibrahim, following similar trips to Singapore and Brunei.

Malaysia and Brunei, which produce crude oil and refined products, could increase production but only to a certain degree, Coyne said.

No injuries have been reported from the fire at the refinery located about an hour’s drive from Melbourne. The cause of the blaze and the extent of the damage was not immediately clear.

In the nearly seven weeks since the war began, supply fears have stoked panic buying, doubling demand for fuel in some areas, despite assurances from the government the market is well supplied.

Last month, Albanese announced temporary relief measures including halving the fuel excise and suspending the heavy road user charge for three months to help households cope with a surge in costs driven by the Iran war.

“It’s going to be a very bumpy and expensive few months,” said Tennant Reed, climate change and energy director at Australian Industry Group.

In March the government committed to underwriting a portion of fuel purchases by refiners and suppliers.

“We’ll continue to work with the company to do what we can to make sure that anything that is offline is brought online as soon as possible,” Albanese said at a media conference in Malaysia’s administrative capital, Putrajaya.

Reed said the government could go to market to secure more supply to make up for any loss of production at Viva’s plant, but it would still take weeks for the cargoes to arrive.

Viva Energy CEO Scott Wyatt told reporters the primary focus was to completely put out the fire that hit operations at two units at the refinery before assessing damage and safely restoring production.

“All the other units are still operating and still in production but they are at minimum rates to maintain safety across the site,” he said.

“We’ll only start increasing production again once we’re confident that we can do that safely.”

Viva’s shares were on a trading halt pending an update on the impact of the fire.

Dubai completes 36% of Deira stormwater project under Dhs500m infrastructure plan

The project is a key component of the Tasreef Programme, a Dhs30bn initiative to develop Dubai’s stormwater drainage network into a unified system

Gulf Business
Gulf Business

16 April, 2026

Dubai completes 36% of Deira stormwater project under Dhs500m infrastructure plan
Image: Dubai Media Office

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Article Summary
Dubai Municipality's Dhs500m Deira stormwater drainage project is 36% complete, aiming for a 2027 finish. This 60km network, part of the Dhs30bn Tasreef Programme, will serve 13 areas, improving infrastructure efficiency. Phase one includes 22km of drainage and a new pumping station. The programme seeks to boost capacity and reduce operational costs for a more sustainable system.

Dubai Municipality has completed 36 per cent of a stormwater drainage system development project in Deira, part of ongoing efforts to enhance the emirate’s infrastructure efficiency, officials said.

The project, with a total cost of Dhs500m, will serve 13 key areas spanning 4,700 hectares through the development of 60km of stormwater drainage networks. Work is progressing as scheduled, with completion targeted by the end of 2027.

Director general engineer Marwan Ahmed bin Ghalita reviewed the project during a field visit, accompanied by senior executive, administrative and engineering officials.

The areas covered include Al Qusais 1 and 2, Oud Al Muteena, Mizhar 3, Al Twar 1 and 3, Muhaisnah 4, Al Nahda 2, Al Qusais Industrial Area 1, Al Garhoud, Casablanca Street, Dubai Airport area and Al Rashidiya.

As part of the first of three main phases, 22 km of drainage networks have been developed, with pipe diameters reaching up to 2.5 metres. A new pumping station near Dubai Creek, with a capacity of up to 8,000 litres per second, has been constructed to support the system’s efficiency.

Tasreef Programme: A Dhs30bn initiative to develop Dubai’s stormwater drainage network

The project is a key component of the Tasreef Programme, a Dhs30bn initiative to develop Dubai’s stormwater drainage network into a unified system characterised by high efficiency and flexibility. The programme aims to increase infrastructure capacity by 700 per cent, reduce construction, operation and maintenance costs by 20 per cent, and extend the lifespan of the network.

Bin Ghalita said the projects form a cornerstone of efforts to enhance strategic infrastructure through sustainable, advanced and adaptable solutions aligned with future requirements.

Adel Mohammed Al Marzouqi, CEO of the Waste and Sewerage Agency at Dubai Municipality, said the project focuses on enhancing operational efficiency through flexible engineering solutions in line with global standards, increasing capacity and reducing the risks of water accumulation while supporting service quality and business continuity.

Dubai Municipality said it continues to manage and develop stormwater and sewerage networks through an integrated approach aligned with global standards, supported by innovative engineering solutions and smart technologies.

Read: Dubai completes phase 1 of Al Quoz sewerage project worth Dhs250m

UAE eases tax penalties as amended rules take effect to ease compliance burdens

Amended rules reduce fines and encourage voluntary disclosures as part of broader efforts to streamline the tax system and support economic growth

Neesha Salian
Neesha Salian

16 April, 2026

UAE eases tax penalties as amended rules take effect to ease compliance burdens
Image: FTA

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The Federal Tax Authority (FTA) said amendments to administrative penalties for violations of tax laws in the UAE have come into force, aiming to reduce compliance burdens and encourage voluntary disclosure by businesses.

The changes, introduced under Cabinet Decision No.(129) of 2025 amending certain provisions of Cabinet Decision No (40) of 2017 on administrative penalties imposed for violations of tax laws in the UAE, took effect on April 14, the authority said in a statement.

The FTA said the revisions are designed to support taxpayers, help them regularise their positions and improve compliance, while enhancing the country’s competitiveness and ease of doing business.

“This platform represents a shift away from resource-intensive traditional processes towards more efficient digital models that accelerate access to financial services and reduce operational costs,” said Abdulaziz Mohammed Al Mulla, director general of the FTA.

Updated rules linked to tax violations

The updated rules apply to violations under tax procedures, excise tax and value-added tax legislation, with several penalties reduced or recalibrated.

Among the changes, the penalty for failing to submit tax-related records in Arabic when requested has been reduced to Dhs5,000 ($1,361) from Dhs20,000.

Penalties for failing to update tax records have also been lowered, with fines set at Dhs1,000 per violation and Dhs5,000 for repeat offences within 24 months, compared with previous penalties of up to Dhs10,000.

In addition, the penalty for legal representatives failing to notify the authority of their appointment has been cut to Dhs1,000 from Dhs10,000, with such penalties payable from the legal representative’s own funds.

The authority said the amendments also cover penalties related to late tax payments, incorrect tax returns and failures to submit voluntary disclosures, among other violations.

Officials said the changes are intended to encourage taxpayers to correct errors promptly and submit voluntary disclosures without facing significant financial penalties.

The move forms part of broader efforts by the UAE to modernise its tax framework and support businesses while maintaining regulatory oversight in line with evolving economic requirements.

Read: Central Bank of UAE partners with Norbloc to develop unified e-KYC platform

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