Some airlines in Asia and Europe raised fares, added fuel surcharges or adjusted schedules yesterday as the Middle East conflict drove jet fuel costs sharply higher and disrupted key air routes.
Australia’s Qantas Airways, Scandinavia’s SAS and Air New Zealand were among the carriers that announced price increases, while others warned the crisis could threaten fuel supplies or force further schedule changes. Jet fuel prices, which were around $85 to $90 per barrel before US-Israeli strikes on Iran, have soared to between $150 and $200, Air New Zealand said, as it suspended its 2026 financial outlook because of uncertainty over the conflict.
The war has disrupted a key oil export corridor, driving up airline costs, pushing fares higher on some routes and deepening concern about a broader hit to travel demand. “Increases of this magnitude make it necessary to react in order to maintain stable and reliable operations,” an SAS spokesperson said, adding it had implemented a “temporary price adjustment.” SAS last year temporarily adjusted its fuel hedging policy because of uncertain market conditions and said it had no fuel consumption hedged for the following 12 months.
Several Asian and European airlines, including Lufthansa and Ryanair, have hedging in place, securing part of their fuel needs at fixed prices.
Finnair, which had hedged more than 80 per cent of its first-quarter fuel purchases, warned fuel availability could also come under pressure if the conflict dragged on.
“A prolonged crisis could affect not only the price of fuel but also its availability, at least temporarily,” a Finnair spokesperson said.
Kuwait, a major jet fuel exporter to northwest Europe, has faced output cuts.
Planes arriving in Dubai were briefly placed in a holding pattern yesterday because of a potential missile attack, flight tracking service Flightradar24 said on X, underscoring the region’s airspace disruption. The planes eventually landed. Airlines are adjusting networks and prices in response. Qantas said it was exploring redeploying capacity to Europe, while Cathay Pacific said it would add flights to London and Zurich in March as airspace closures and capacity constraints drive up fares on Asia-Europe routes.
Air New Zealand said it had raised fares across routes and warned further price or schedule changes could follow if jet fuel costs remained elevated. Hong Kong Airlines said it would raise fuel surcharges by up to 35.2pc from tomorrow. Air India said it would begin a phased increase in fuel surcharges on domestic and international routes.
Some European carriers said they saw no immediate need to raise prices. IAG, the owner of British Airways, said it was well hedged for the near term and had no plans to adjust fares. British Airways, however, said it had brought forward the end of its winter-season flights to Abu Dhabi because of the “continuing uncertainty.”
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