Soaring

Airlines are now hiking luggage fees due to soaring fuel costs caused by Iran conflict

A MAJOR airline has become the first to increase luggage charges in response to the fuel crisis caused by the Iran conflict.

American carrier JetBlue has confirmed that the cost of taking baggage onboard is to go up – and others could follow suit.

JetBlue airplanes at Terminal B of New York LaGuardia Airport (LGA) in the United States
JetBlue is the first airline to increase luggage fees due to the Iran crisisCredit: Getty

The new costs will see checked bags go up by $4 (£3) for off peak, economy travellers, so will now be $39 (£30).

And the cost for peak economy travellers will go up by $9 (£6.80) so to $49 (£37).

Passengers paying for luggage less than 24 hours before the flight will pay an extra $10 (£7.50).

A JetBlue spokesperson told local media: “Adjusting fees for optional services used by select customers, such as checked baggage, allows us to continue offering more competitive fares.”

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So far, a number of airlines have already said they will be raising the cost of flights due to the fuel crisis.

Cathay Pacific, AirAsia and Thai Airways are just some that are increasing fares, along with Air New Zealand.

United Airlines said it could eventually see fares increase as much as 20 per cent.

Other airlines have said they are cancelling flights altogether.

United Airlines confirmed that it would be cutting five per cent of flights for the next few months, which works out to around 250 a month.

Air New Zealand has cancelled 1,100 fights, affecting 44,000 passengers, while Scandinavian airline SAS also cancelled 1,000 flights.

But airlines, especially budget ones, could choose to leave the cost of flights alone to remain competitive and instead raise the cost of extra fees.

In the UK, both Ryanair and easyJet have said their fares won’t be affected by the fuel crisis for now.

However, the crisis is being caused by the closure of the Strait of Hormuz – and the longer it continues, the more they will be at risk.

The Strait of Hormuz is one of the world’s most important oil routes, with around 20million barrels passing through every day – roughly 20 per cent of global supply.

Petrol and diesel fuel costs have increased by more than 17p a litre since the end of February, with a litre of unleaded petrol costing 150.11p as of March 30.

Two plastic travel suitcases in the airport hall
Other budget airlines could follow and increase luggage in a bid to keep flight costs downCredit: Alamy

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I went to the Caribbean island soaring in demand

THERE’S a Caribbean island that is booming in demand but barely any Brits go.

New research conducted by TravelSupermarket has seen a number of Caribbean destinations surge in demand, caused by the ongoing conflict in the Middle East.

Turks & Caicos is seeing a huge boom in searches, according to the expertsCredit: Getty
There are amazing floating bars tooCredit: Visit Turks & Caicos Islands
I visited the islands back in 2024 when Virgin launched flightsCredit: Supplied

And the research found that searches to Turks & Caicos were up 119 per cent, when looking at the first two weeks of March compared to the previous two weeks.

Not only that, but British Airways said searches for the Turks & Caicos were up 22 per cent this year, compared to 2025.

The islands are lesser visited by Brits, with the majority of tourists being Americans, with famous as celebs such as Kylie Jenner, Will Smith and Bill Gates visiting too.

This is likely to due to the lack of direct flights.

Read more on the Caribbean

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However, I visited the island back in 2024 when Virgin Atlantic launched direct routes from the UK (which were sadly scrapped last year).

One of the main draws are the stunning beaches – so beautiful in fact they are often named some of the best in the world.

I spent my jet-lagged mornings walking the length of Grace Bay, with powder soft sand and quiet sunrises.

Even in the evening they were just as beautiful with pink sunsets ending the day.

And there is not just one, but two floating bars.

One of the most popular is Captain Oak’s Tiki Bar, which has even welcomed celebs such as Drake and Jake Harlow.

Tourists have to pay $20 to get there by boat or jet ski.

Otherwise there is the more vibey Noah’s Ark, which has a floating dance floor as well as sea swings.

If you want to stay on land, head to Da Conch Shank on a Wednesday (also named one of the world’s best beach bars) to join the 14-man marching band playing live music throughout the tables.

I recommend staying at Wymara Resort and Villas, with rooms that overlook the beach.

Captain Oak’s Floating Bar has even been visited by DrakeCredit: Visit Turks & Caicos Islands
Save time for Da Conch Shack, one of the world’s best beach barsCredit: TripAdvisor

Our favourite Caribbean holidays

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Hotel Capriccio Mare, Dominican Republic

Facing the calm, crystal waters of the Caribbean Sea, Hotel Capriccio Mare looks like a bright white island villa. The hotel’s position on Bavaro’s coastline is perfect for exploring the popular resort town of Punta Cana. Whether it’s strolling the sands to grab a fresh coconut with a straw, or venturing out on a catamaran trip to Saona Island, this dreamy Caribbean resort is not one to miss.

BOOK HERE

Coconut Court Beach Hotel, Barbados

This friendly, family-run hotel is a slice of Caribbean paradise. This hotel sits smak-bang on a sugar-white beach with warm turquoise waters. Enjoy both the beaches of Barbados and its plethora of rum bars – there are about 1,500 of them on the island.

BOOK HERE

Sugar Bay Club, St Kitts

Set on the quiet side of St Kitts’ Frigate Bay, the boutique Sugar Bay Club offers superb value and wonderful views of the Atlantic Ocean. Staff are on hand to assist with island tours, from catamaran cruises to scenic railway excursions.

BOOK HERE

Antigua Yacht Club Marina Resort, Antigua

Amazing Antigua has 365 beaches – one for every day of the year – as well as a fascinating history. This resort in Falmouth Harbour is perfect for exploring the beautiful local area, including Pigeon Point, Nelson’s Dockyard and English Harbour.

BOOK HERE

Splash out on the Selling Sunset-esque villages if there is a group of you, complete with slides into the ocean and access to the Caribbean’s first ocean-water pool.

(Seven-night deals can be found for just under £3k each if travelling later this year).

The best way to get there is changing in the US with Virgin Atlantic, with flights around 12 hours.

Other airlines including Finnair, American Airlines and JetBlue also have connecting flights.

Otherwise we’ve found seven night holidays with return flights for as little as £1,569 each with loveholidays.

Here’s another cheap Caribbean island where you can find £2 beers.

And we explain why a holiday to Puerto Rico should be on the cards this year.

Stay at Wymara Resorts’ villas is you want your own slide into the waterCredit: 2022 Gary James Owner
Holiday packages can be found for under £1,300 eachCredit: Alamy

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Another airline axes 1,000 flights due to soaring fuel costs

A MAJOR airline in Europe has cancelled 1,000 flights next month due to soaring fuel costs caused by the Iran crisis.

Scandinavian Airlines System (SAS) is the second airline to do so, following Air New Zealand.

Several SAS aircraft parked on the tarmac at Copenhagen Airport, Denmark.
SAS is the first European airline to cancel flights due to the soaring cost of jet fuelCredit: Alamy

While the majority will be shorter domestic routes, some other longer routes could also be affected.

The main flights affected are across Norway, Sweden and Denmark.

In a statement, the airline said: “Given the ongoing situation in the Middle East, including the sharp and sudden increase in global fuel prices, we are taking measures to strengthen our resilience.”

“One such measure is a limited number of short-term flight cancellations.”

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SAS CEO ​Anko van ⁠der Werff told local media: “The price of jet fuel has doubled in ten days. ‌

“Even ⁠if we try to absorb cost hikes as far as we can this is a shock that strikes directly at the aviation industry.”

He confirmed hundreds of flights have already been cancelled this month, although urged that it was a fraction of their usual 800 flights a day.

He added: “We are cancelling a few hundred flights in March, but trying to protect our traffic as much as possible.”

More are expected to be affected after the Easter holidays.

The airline has also confirmed that they have increased flight prices, one of the first to do so in response to the conflict and alongside Qantas and Cathay Pacific.

SAS is the first major airline in Europe to axe flights because of of the cost of fuel going up.

This has been caused by the Iran conflict, with fears of it continuing due to the closure of the Strait of Hormuz, a major shipping route.

Earlier this month, Air New Zealand also confirmed they would be cancelling flights due to fuel costs.

The airline’s chief executive of Nikhil Ravishankar said the five per cent reduction in flights would last until May.

This works out to around 44,000 passengers, with the majority of services affected being short haul and domestic.

Most UK airlines are not currently affected due to a process called ‘hedging’ where they pay a set price for oil.

IAG – who owns British Airways – confirmed that 80 per cent of fuel was hedged for month.

Ryanair echoed this, saying that 84 per cent was hedged for the current quarter.

However, they could still be affected if the Iran conflict continues.

Before the conflict, prices were around $90 (£67) per barrel. This has now increased to as much as $200 (£149) per barrel.

We’ve explained what the Iran crisis means for your holiday.

And here are the European destinations booming in demand due to the ongoing conflict.

A Boeing 737-700 from SAS airline parked at Bergen airport in Norway, attached to a jet bridge.
More than 1,000 flights have been cancelled next monthCredit: Alamy

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Major airline cancels more than 1,000 flights until summer due to soaring fuel prices

A SURGE in fuel prices due to the Middle East conflict has resulted in a major airline axing five per cent of its flights.

Air New Zealand announced that it will be cutting back on flights over the next two months.

Air New Zealand will be cutting back on its number of flights until MayCredit: Alamy
The crisis in the Middle East has resulted in the rising price of fuelCredit: Alamy

Chief Executive of Air New Zealand Nikhil Ravishankar said the airline would see roughly a five per cent reduction in its services.

And that this would continue until the beginning of May 2026.

This reduction equates to around 1,100 flights which in turn will affect 44,000 passengers out of its 1.9million.

Talking to 1News Nikhil Ravishankar explained: “We’re focused on consolidating flights that are off-peak flying hours, for example, or where there is an alternative that we can re-accommodate customers.”

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He later added that the, “interventions we’re putting in place are not only reasonable, but are what all airlines around the world are doing”.

Air New Zealand said that most of the passengers affected would be moved onto other flights.

The airline has not provided a list of affected flights, but some officials in New Zealand have revealed domestic routes have been altered.

Mayor Nadine Taylor said that Air New Zealand intends to reduce its routes from Marlborough to Wellington, with Auckland and Christchurch flights also affected

The airline detailed that fewer long-haul flights would be cut.

MR Ravishankar said: “People want to get to Europe still, and ​over the US airspace we can get them into Europe, and that’s what we’re focused on doing.”

The announcement comes shortly after Air New Zealand increased its prices in response to the rising cost of fuel.

Domestic flights were going up by $10 (£4.37) one way, short haul by $20 (£8.74), and long haul $90 (£39.35).

Due to the ongoing US-Iran conflict, the cost of jet fuel has risen significantly.

Before the conflict, prices were around $90 (£67) per barrel and have since increased to as much as $200 (£149) per barrel.

As a result, it’s not just Air New Zealand that has increased its ticket prices – other airlines like Qantas and Scandinavia’s SAS have done the same.

However, some airlines like RyanaireasyJetBritish Airways and Virgin Atlantic, are less affected because they have secured some of their fuel at fixed prices for a set amount of time.

Ryanair boss Michael O’Leary said the rise in jet fuel “won’t affect our costs and it won’t affect ​our low fares”.

It’s not just flights that are affected. Places like the Balearic and Canary Islands are warning of a rise in the cost of food and drink.

And here’s why you should book a holiday now, as Iran crisis makes it more expensive.

Air New Zealand is cutting back on its routes due to the rise in jet fuelCredit: Alamy

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G7, EU Leaders to Hold Talks on Soaring Energy Prices Amid Iran War

G7 energy ministers will hold a call on Tuesday to discuss sharply rising energy prices triggered by the ongoing war in Iran, officials said. A separate call later in the day will see European Union leaders addressing similar concerns, reflecting heightened global anxiety over fuel supply and costs.

Oil prices surged to their highest levels since mid-2022 on Monday, driven by fears of reduced Gulf output and disruptions to tanker traffic through key shipping routes. Even before the Iran conflict, European energy prices were generally higher than those in the United States and China.

G7 Prepares Response, But Stops Short of Releases

G7 finance ministers signalled readiness to take “necessary measures” in response to the price surge but did not commit to coordinated emergency releases of strategic oil reserves.

The G7, which includes United States, Canada, Japan, Italy, Britain, Germany, and France, will hold the call at 1245 GMT. French Finance Minister Roland Lescure, whose country holds the G7 presidency this year, said that Europe and the U.S. currently do not face immediate supply shortages.

EU Leaders Target Competitiveness and Energy Costs

Later on Tuesday, EU leaders will discuss energy prices and competitiveness, joining German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, Belgian Prime Minister De Wever, and others.

The EU is highly exposed to global energy volatility, importing more than 90% of its oil and roughly 80% of its gas. EU Commission President Ursula von der Leyen has pledged proposals at next week’s EU summit to address rising prices.

Officials have already discussed measures including adjustments to energy taxes and potential amendments to the EU carbon price, which contributes around 11% to industrial power costs.

Coordinated Action Sought but Uncertain

The calls by the G7 and EU reflect a growing urgency to manage energy price shocks caused by the Iran war. While governments have the tools to intervene, officials are balancing the need to stabilize prices with broader fiscal and strategic considerations.

With oil and gas markets highly sensitive to geopolitical developments, both G7 and EU leaders face pressure to act quickly to prevent price spikes from translating into economic slowdowns or political unrest across their regions.

With information from Reuters.

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