Airlines cut flights and raise fares as jet fuel surges
Airlines cut flights and raise fares as jet fuel surges
Jet-fuel costs spike amid Middle East tensions, forcing carriers like Air India and Air New Zealand to trim routes and lift ticket prices, with more hikes expected.
Jet-fuel prices have surged as the Iran war weighs on global fuel costs, prompting Air India and Air New Zealand to cut flights and raise fares. The move comes as airlines worldwide scramble to counter higher fuel bills, which can account for a sizable share of operating costs. The latest numbers show European jet fuel trading at a record $1,838 per tonne, more than double the level before the conflict began, underscoring the pressure on carriers to reprice routes and rework schedules.
Fuel costs typically make up 20-40% of an airline’s operating expenses, and analysts warn travellers should brace for further ticket-price increases and more cancellations if the war persists. The Gulf region remains a critical source of aviation fuel, accounting for about half of Europe’s imports. Much of that supply passes through the Strait of Hormuz, a chokepoint Iran has exploitatively challenged in recent weeks, further tightening the market. Energy Intelligence notes that the Al-Zour refinery in Kuwait alone provides roughly 10% of Europe’s jet-fuel imports, highlighting the fragility of the supply chain during geopolitical strain.
Air New Zealand has announced cancellations that affect routes in and out of Auckland, Wellington and Christchurch, with flights to smaller airports staying largely unchanged. A spokesman said the airline is experiencing fuel costs “like airlines globally, more than double what they would usually be.” Most affected customers are being offered alternatives on the same day, while some services have been trimmed to preserve capacity elsewhere. In India, Air India said it would switch its fuel surcharge on domestic flights from a flat fee to a distance-based model and raised surcharges on international services, citing one of the most challenging fuel-cost environments seen in years.
Across Asia, many carriers have pared back services and raised fares to cope with the sustained fuel-price spike. Analysts expect this trend to continue as long as jet-fuel prices stay elevated, potentially leading to more route cancellations and higher travel costs for consumers. Travelers planning trips should monitor airline notices and be prepared for adjustments to schedules and fares as the fuel-market situation unfolds.
