A surge in jet fuel prices, driven by the US-Israeli war on Iran, is rippling through the global aviation sector, forcing airlines to raise fares and revise financial outlooks.
Jet fuel prices have jumped from around $85–$90 per barrel to between $150 and $200 in recent weeks — a significant hit for an industry where fuel accounts for up to a quarter of operating costs.
Below is how airlines are responding:
Aegean Airlines
The Greek airline expects suspended Middle East flights and higher fuel costs to have a “notable impact” on first-quarter results.
AirAsia X
The Malaysian carrier has cut 10 per cent of flights across the group and introduced a fuel surcharge of about 20 per cent.
Air Canada
Canada’s largest airline plans to trim four of its 38 daily flights to New York, with cuts to JFK services from June 1 to October 25, 2026.
Air France-KLM
The group plans to raise long-haul ticket prices, with fares set to increase by €50 per round trip. KLM will also cancel 160 European flights in the coming month.
Air India
The airline is shifting from a flat domestic fuel surcharge to a distance-based model, noting international surcharges no longer offset rising costs.
Air New Zealand
The carrier is cutting flights through May and June, raising fares, and suspending its full-year earnings forecast due to fuel volatility.
Air Transat
The airline will reduce capacity by 6 per cent from May to October, with cuts to Europe and Caribbean routes. Services to Cuba remain suspended until October.
Akasa Air
The Indian carrier has introduced fuel surcharges ranging from 199 to 1,300 rupees on domestic and international flights.
Alaska Air
The airline has withdrawn its full-year profit forecast and warned of a hit to second-quarter earnings, while trimming capacity in some markets.
American Airlines
The carrier is raising checked baggage fees — by $10 for the first and second bags, and $150 for the third — and reducing some economy benefits.
Asiana Airlines
The airline will cut 22 flights between April and July due to rising fuel costs.
Cathay Pacific
The airline has raised HK$2.08bn through three-year fixed-rate notes at a yield of 3.78 per cent.
Cebu Air
The airline said fuel prices remain a key concern and it will continue reviewing pricing and network strategies.
China Eastern Airlines
Fuel surcharges have been increased, with flights under 800km facing a 60 yuan charge and longer routes 120 yuan.
Delta Air Lines
Delta is cutting capacity by around 3.5 percentage points and increasing baggage fees, while forecasting lower-than-expected profits.
EasyJet
The airline expects a wider half-year loss of £540m–£560m, including £25m in additional fuel costs in March.
Frontier Airlines
The carrier is reviewing its full-year outlook due to rising fuel costs.
Greater Bay Airlines
Fuel surcharges are being raised on most routes, except for mainland China and Japan.
Hong Kong Airlines
Fuel surcharges are rising by up to 35 per cent, with the largest increases on routes to the Maldives, Bangladesh and Nepal.
IAG
The group has not yet raised ticket prices, citing fuel hedging that covers the short to medium term.
IndiGo
The airline has introduced fuel surcharges, including 900 rupees for Middle East routes and 2,300 rupees for Europe.
JetBlue Airways
JetBlue has secured $500m in financing and said it does not expect to consider bankruptcy this year.
Korean Air
The airline will enter emergency management mode from April as costs rise.
Lufthansa
The group will remove 20,000 short-haul flights through October and has accelerated aircraft groundings.
Pakistan International Airlines
Fares are being increased by $20 domestically and up to $100 internationally.
Qantas Airways
The airline has delayed a A$150m buyback and raised its fuel cost forecast to A$3.1bn–A$3.3bn.
SAS
The carrier is cancelling 1,000 flights in April following earlier cancellations in March.
Spirit Airlines
The airline has reportedly sought emergency funding to offset rising fuel costs.
Spring Airlines
Fuel surcharges on domestic flights are being increased.
Southwest Airlines
The airline expects lower profits and has raised baggage fees.
TAP
Price increases are expected to partially offset higher fuel costs.
Thai Airways
Fares are being increased by 10–15 per cent.
TUI
The company has cut profit guidance and suspended revenue forecasts after incurring around €40m in additional costs.
Turkish Airlines / Lufthansa (SunExpress JV)
A €10 per passenger fuel surcharge will be introduced on Turkey-Europe routes from May 1. Turkish Airlines is also retaining earnings instead of paying dividends.
T’way Air
The airline plans unpaid furloughs for some cabin crew in May and June.
United Airlines
Ticket prices could rise by 15–20 per cent. The airline expects to recover up to 85–100 per cent of fuel cost increases by the fourth quarter.
VietJet
Flight frequencies have been adjusted due to potential fuel shortages.
Vietnam Airlines
The airline plans to cancel 23 weekly domestic flights and has requested tax relief on jet fuel.
Virgin Atlantic
Fuel surcharges are being added, though profitability remains under pressure.
Virgin Australia
Fuel costs are expected to rise by A$30m–A$40m, with a 1 per cent capacity reduction planned.
Volotea
The airline has introduced a pricing model linking fares to fuel costs, including potential post-purchase surcharges.
WestJet
The airline has cut seat capacity and introduced fuel surcharges of around C$60 on some bookings.