Rising costs, higher fares: How airlines are coping with fuel spike

A surge in jet fuel prices, driven by the ongoing U.S.-Israeli war ​on Iran, has upended the ​global aviation industry, prompting airlines to raise fares and revise financial ​outlooks.

Jet fuel prices have soared from $85-$90 per barrel to $150-$200 per barrel in recent days for an industry where fuel accounts for up to a quarter of operating expenses.

Below is ‌a list of ⁠how ⁠airlines are responding, in alphabetical order:


AIR NEW ZEALAND

The airline was on Tuesday one of the first ​to announce broad increases to ticket prices and also suspended its fiscal 2026 earnings forecast due ​to unprecedented volatility in global jet fuel markets.

The price hikes for one-way economy fares are set at NZ$10 ($6) on domestic routes, NZ$20 on short-haul international services ​and NZ$90 on long-haul flights, with further price, network ⁠and schedule ‌changes possible if jet fuel costs remain elevated.

CATHAY PACIFIC AIRWAYS

The ​Hong Kong ​airline said on Tuesday it had implemented additional flights to ⁠London and Zurich in March to address disrupted travel routes. ​The airline said it reviews its fuel surcharges monthly and ​held them steady last month at $72.90 on flights between Hong Kong and Europe or North America.

HONG KONG AIRLINES

The local carrier said it would raise fuel surcharges by up to 35.2% from Thursday, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal where charges will rise to ‌384 Hong Kong dollars ($49) from 284 Hong Kong dollars.

QANTAS AIRWAYS

The Australian airline said on Tuesday it would hike fares on its international ​routes for ​the week of March ⁠9 and that it is considering adding capacity on its existing Europe routes in the coming months.

SAS (Scandinavian Airlines)

The dominant airline in the Nordic countries said on Tuesday that ​it had implemented a temporary price adjustment due to rising jet fuel prices.

VIETNAM AIRLINES

The Vietnam-based airline said it had requested government assistance to remove an environmental tax on jet fuel, as operating costs for Vietnamese airlines have surged by around 70% due to jet fuel prices rise, according to local officials.