Global airlines are raising fares as the Middle East conflict pushes jet fuel prices to record highs.
Qantas Airways and Air New Zealand announced they will charge a higher ticket price on many routes due to soaring fuel costs. Jet fuel, previously $85–$90 per barrel, has surged to $150–$200 per barrel in recent days.
Air New Zealand said one-way economy fares increased by NZ$10 ($6) on domestic flights, NZ$20 on short-haul international routes, and NZ$90 on long-haul flights. The airline warned further increases are possible if fuel prices remain high.
Qantas said international fares are rising, particularly for Europe-bound flights, and demand is high. The airline reported flights to Europe were more than 90% full in March, compared to 75% normally. Officials said the higher ticket costs reflect fuel surcharges and operational adjustments.
Hong Kong Airlines is raising fuel surcharges by up to 35.2%, with flights to the Maldives, Bangladesh, and Nepal seeing the steepest increases. Cathay Pacific is also monitoring fuel costs and adjusting schedules and surcharges where needed.
The Middle East conflict has forced airlines to reroute planes and avoid certain airspace, increasing operating costs. Flights into Dubai were briefly delayed due to a missile threat, illustrating ongoing risks for carriers.
Vietnam Airlines requested local authorities remove environmental taxes on jet fuel, citing a 60–70% rise in operating costs. Southeast Asian carriers are struggling to maintain service amid fuel shortages and higher prices.
Airline shares have shown some stability after U.S. President Donald Trump suggested the conflict could end soon. Qantas, Korean Air, and Cathay Pacific all recorded modest gains following initial sell-offs.
Experts say fuel accounts for roughly 20–25% of airline operating costs, making spikes in oil prices a major concern. The rise in fares, reflected in the higher ticket prices, is a direct response to these expenses and global airspace disruptions.
Travel agencies in Asia are cancelling Middle East tours and waiving fees for affected customers. Thailand’s Ministry of Tourism warned prolonged conflict could cost the country 595,974 tourists and $1.29 billion in revenue.
The higher ticket prices are expected to continue as airlines adjust to ongoing volatility in fuel markets and geopolitical uncertainty.
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