The sharp rise in the cost of jet fuel, driven by escalating tensions in the US-Israel war with Iran, has forced several airlines to hike fares, cut routes and reassess their financial forecasts
Virgin Atlantic is adding fuel charges to fares(Image: NurPhoto via Getty Images)
Multiple airlines are cancelling flights and introducing new charges as a deepening jet fuel crisis sends shockwaves through the global aviation industry.
Prices have surged dramatically in recent weeks, climbing from roughly $85-$90 per barrel to as high as $150-$200, driven by escalating tensions in the US-Israeli war with Iran.
The sharp rise in costs has now forced carriers to hike fares, cut routes and reassess their financial forecasts. The spike has triggered warnings of major disruption, with International Energy chief Fatih Birol cautioning that Europe could have as little as six weeks of jet fuel supply remaining if the Strait of Hormuz stays closed.
There are more than 30 airlines around the world who say they have been forced to cancel flights or add charges:
AirAsia X – Cut around 10% of flights and introduced a fuel surcharge of roughly 20%.
Air France-KLM – Raising long-haul fares, plus cabin fares by 50 euros per round trip, as well as cancelling flights. KLM, the group’s Dutch arm, is set to scrap 160 European services in the coming months.
Air India – Switching to distance-based fuel surcharges, warning current pricing does not cover rising costs, reports the Independent.
Air New Zealand – Reducing flights through May and June, increasing fares and suspending its full-year earnings forecast.
Akasa Air – Introducing fuel surcharges ranging between 199 and 1,300 Indian rupees ($2 to $14) on both domestic and international routes.
Alaska Air – Increasing checked baggage fees by up to $150 on North American routes, as well as for its Hawaiian Airlines unit.
American Airlines – Raising baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag, while cutting some economy benefits.
Asiana Airlines – Cutting 22 flights between April and July due to fuel costs.
Cathay Pacific – Cancelling a small portion of flights from mid-May until the end of June and increasing fuel surcharges.
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 Airlines – Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags.
Easyjet – 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.
Greater Bay Airlines – 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% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal
Indigo – India’s biggest airline said it would introduce fuel charges on domestic and international flights from March 14.
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.
Lufthansa – Grounding 27 planes early and cutting more aircraft from its fleet.
Norse Atlantic Airways – Axed its London Gatwick to Los Angeles route because of fuel costs.
Pakistan International Airlines – Raising domestic fares by $20 and international fares by up to $100.
SAS – Will cancel 1,000 flights in April after already hiking fares.
Spring Airlines – The airline will raise domestic fuel surcharges from April 5.
Southwest Airlines – Hiking baggage fees to $45 for a first bag and $55 for a second.
SunExpress – The airline will add a temporary 10-euro fuel surcharge on Turkey-Europe routes.
TAP Air Portugal – Said fare rises would soften the blow from higher fuel prices.
Thai Airways – Increasing fares by up to 15%.
United Airlines – United Airlines is scaling back loss-making routes over the next six months. It has also been able to push up fares without seeing a major impact on bookings, chief commercial officer Andrew Nocella said, despite the sharp rise in oil and jet fuel costs.
United is also increasing first and second checked baggage fees by $10 for customers travelling within the US, Mexico, Canada and Latin America, according to Reuters.
VietJet Air – Cut flights on some routes because of fuel shortages.
Vietnam Airlines – plans to cancel 23 domestic flights a week from April. The airline reportedly requested government assistance to remove an environmental tax on jet fuel.
Virgin Atlantic – The airline is adding fuel surcharges to fares and will still struggle to return to profitability this year, its CEO Corneel Koster told the Financial Times.
Volotea – Introduced a pricing policy that could add fuel surcharges of up to 14 euros per passenger.
WestJet – Cutting seats, combining flights and adding a C$60 fuel surcharge on some bookings, according to the Canadian press