Airlines Adjust Strategies as Jet Fuel Prices Surge from $90 to $200 per Barrel Amid US-Israeli Conflict

Recent fluctuations in jet fuel prices, which have surged from $85 to $90 per barrel to between $150 and $200 per barrel, have significantly impacted the global aviation sector. This spike, attributed to the ongoing US-Israeli conflict with Iran, has compelled airlines to adjust their pricing strategies and operational plans to mitigate financial losses.

The aviation industry is particularly vulnerable to fuel price volatility, with fuel costs accounting for up to 25% of operating expenses. As prices have recently stabilized, the initial surge has already prompted airlines to revise their financial forecasts and ticket prices.

Airline Responses to Rising Fuel Costs

Aegean Airlines

Aegean Airlines anticipates that the suspension of flights to the Middle East and the increase in fuel prices will have a “notable impact” on its financial results for the first quarter.

AirAsia X

Executives at AirAsia X have announced a 10% reduction in flights across their network, alongside a general fuel surcharge increase of approximately 20%.

Air France-KLM

The Air France-KLM group plans to raise long-haul ticket prices by €50 (approximately $58) to counteract the rising fuel costs.

Air India

Air India is transitioning its fuel surcharge structure from a flat domestic rate to a distance-based grid, noting that international fuel surcharges have not kept pace with the dramatic increase in jet fuel prices.

Air New Zealand

On April 7, Air New Zealand announced it would reduce flight schedules through May and June and increase fares. The airline has also suspended its full-year earnings forecast due to ongoing fuel market volatility.

Akasa Air

India’s Akasa Air is implementing a fuel surcharge ranging from ₹199 to ₹1,300 ($2 to $14) for both domestic and international flights.

American Airlines

American Airlines expects a $400 million increase in expenses for the first quarter due to soaring fuel prices.

Cathay Pacific

Cathay Pacific will increase its fuel surcharge by 34% across all routes starting April 1, with plans to reassess these charges bi-weekly. The airline’s CEO indicated that while flight capacity would be maintained, future growth plans may be adjusted based on demand fluctuations.

Cebu Air

Cebu Air has expressed concern over the sharp rise in fuel prices and will continue to evaluate its pricing and network strategies to mitigate the impact.

China Eastern Airlines

Effective April 5, China Eastern Airlines will raise fuel surcharges on domestic flights, imposing a charge of 60 yuan ($9) for flights under 800 km and 120 yuan for longer routes.

Delta Air Lines

Delta Air Lines plans to reduce its capacity by approximately 3.5% from its original projections and will increase checked baggage fees by $10 for the first two bags and $50 for the third bag. The airline has retracted its planned capacity growth for the current quarter and anticipates profits below Wall Street expectations.

EasyJet

EasyJet’s CEO has warned that European travelers should expect higher ticket prices towards the end of summer as existing fuel hedges expire.

Frontier Airlines

Frontier Airlines is reassessing its full-year forecast in light of significant fuel price increases since its last outlook.

Greater Bay Airlines

The Hong Kong-based airline will increase fuel surcharges on most routes starting April 1, while maintaining current charges for flights to mainland China and Japan.

Hong Kong Airlines

Hong Kong Airlines will raise fuel surcharges by up to 35% from March 12, with the most significant increases affecting flights to the Maldives, Bangladesh, and Nepal.

IAG

IAG, the parent company of British Airways, stated that it does not plan to raise ticket prices immediately due to existing fuel hedges covering short- to medium-term needs.

Indigo

India’s largest airline, Indigo, will introduce fuel charges on both domestic and international flights starting March 14, including a ₹900 charge for Middle Eastern flights and ₹2,300 for European routes. The airline is also advocating for reduced fuel taxes from the Indian government.

JetBlue Airways

JetBlue Airways has announced increases in fees for optional services, including checked baggage, as it faces rising operational costs.

Korean Air

Korean Air will enter emergency management mode in April due to rising oil prices. The airline plans to implement phased response measures based on oil price levels and enhance cost efficiency across the organization.

Pakistan International Airlines

Pakistan International Airlines will increase domestic flight fares by $20 and international fares by up to $100 due to higher fuel surcharges.

SAS

SAS has announced the cancellation of 1,000 flights in April due to high oil and jet fuel prices, following a similar reduction of several hundred flights in March. The airline has indicated that the price surge poses a significant challenge to the aviation industry.

Spring Airlines

Spring Airlines, a budget carrier in China, will raise fuel surcharges on domestic flights starting April 5, with further details to be provided later.

Southwest Airlines

Southwest Airlines will increase checked baggage fees by $10 for the first and second bags, raising costs to $45 and $55, respectively.

TAP

TAP, the Portuguese airline, has indicated that its price increases will help mitigate the impact of rising fuel prices on its revenue.

Thai Airways

Thai Airways plans to raise fares by 10% to 15% to address the escalating fuel costs.

Turkish Airlines and Lufthansa

SunExpress, a joint venture between Turkish Airlines and Lufthansa, will impose a temporary fuel surcharge of €10 per passenger on routes between Turkey and Europe starting May 1.

United Airlines

United Airlines is cutting unprofitable flights over the next two quarters, anticipating that oil prices will remain above $100 until the end of 2027. The airline has successfully raised fares without significantly affecting bookings and will also increase checked bag fees by $10 for customers traveling in North America.

Vietjet

Vietjet, the Vietnamese budget airline, has adjusted flight frequencies on select routes due to potential fuel shortages.

Vietnam Airlines

Vietnam Airlines plans to cancel 23 domestic flights per week starting in April, following a request for government assistance to eliminate an environmental tax on jet fuel.

Virgin Australia

Virgin Australia is adjusting its fares to reflect the rising cost pressures in the aviation sector, significantly impacted by the ongoing situation in the Middle East.

WestJet

WestJet will add a C$60 ($43) fuel surcharge to certain bookings and will combine flights as costs continue to rise.

Source: www.emirates247.com

Published on 2026-04-09 11:55:00 • By the Editorial Desk

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