From Air India to Qantas: Airlines Hiking Fares as Fuel Prices Soar Amid US-Iran War | Full List
Airlines across the world are raising ticket prices and introducing fuel surcharges as jet fuel costs surge following the ongoing US-Iran war and tensions in the Middle East. The conflict has disrupted oil supply routes and pushed crude prices sharply higher, significantly increasing aviation fuel costs for airlines.
Aviation turbine fuel is one of the largest expenses for airlines, accounting for nearly 40% of operating costs, forcing carriers to pass some of the increased costs on to passengers through higher ticket prices and additional surcharges.
Here is a list of major airlines that have announced fare hikes or fuel surcharges due to the fuel price surge.
1. Air India
Air India has introduced a fuel surcharge on both domestic and international flights starting March 12. Domestic tickets will see a surcharge of about ₹399, while international routes will see higher surcharges depending on destination regions.
The airline said the move was necessary due to the steep rise in aviation turbine fuel prices linked to geopolitical tensions in the Gulf region.
2. Qantas Airways
Australia’s national carrier Qantas has raised fares on several international routes by around 5% on average as jet fuel costs surge. The airline said operating expenses have increased sharply due to the spike in oil prices.
3. Cathay Pacific
Hong Kong-based Cathay Pacific has announced an increase in fuel surcharges, including doubling certain passenger fuel levies on long-haul flights. The airline cited rising fuel prices as the primary reason for the adjustment.
4. Thai Airways
Thailand’s national carrier Thai Airways said ticket prices could rise by 10% to 15% to offset the growing cost of aviation fuel and operational disruptions caused by the Middle East conflict.
5. Air New Zealand
Air New Zealand has also increased ticket prices and warned that further pricing adjustments may occur if jet fuel prices remain elevated. The airline has even cut some flights to manage the surge in operating costs.
6. Scandinavian Airlines (SAS)
The Nordic carrier SAS has implemented a temporary price adjustment to cope with the sudden spike in fuel prices triggered by the Middle East conflict.
7. AirAsia
Budget airline AirAsia has increased fares and adjusted fuel surcharges across several routes as part of its response to rising fuel costs.
Why Airfares Are Rising
The war in the Middle East has pushed jet fuel prices to extremely high levels, with global aviation fuel prices nearly doubling compared with earlier in the year.
In addition, airlines are facing:
- Disruptions in oil supply chains
- Airspace closures and flight rerouting in the Middle East
- Increased operational and insurance costs
These factors are forcing airlines to adjust fares worldwide.
What It Means for Travellers
Industry experts warn that ticket prices could rise further in the coming months, especially on long-haul routes between Asia, Europe, and North America. Demand for alternative routes that avoid conflict zones has also pushed prices higher.
If the conflict continues and fuel prices remain elevated, airlines may introduce additional surcharges or reduce flights, potentially making international travel more expensive for passengers globally.