Price hikes, outlook cuts - What airlines are doing as fuel costs surge

A surge in jet fuel prices, driven by the 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:


AEGEAN AIRLINES
The Greek airline said on March 12 that it expected suspended Middle East flights and a spike in fuel prices to have a "notable impact" on its first-quarter results.

AIR FRANCE-KLM
The French airline said on March 12 it planned to increase long-haul ticket prices to address surging jet fuel costs. It said cabin fares would rise by 50 euros ($57) per round trip.

AIR NEW ZEALAND
The airline was ‌one of the first ⁠to announce ⁠broad increases to ticket prices on March 10. It 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 fuel costs remain elevated.

AKASA AIR
India's Akasa Air said on March 14 it was introducing a fuel surcharge ranging between 199-1,300 Indian rupees ($2-$14) on domestic and international flights.

AMERICAN AIRLINES
The U.S. carrier said on March 17 it expected a $400 million increase in first-quarter expenses as jet fuel prices surge.

CATHAY PACIFIC
The Hong Kong airline said it would raise fuel surcharges on all routes from March 18, citing a doubling of jet fuel prices since the start of the month. Earlier in March, the carrier said it reviewed fuel surcharges monthly and had kept them steady last month at $72.90 ⁠for flights between ‌Hong Kong and Europe or North America.

CEBU AIR
The Philippines-based airline said on March 13 the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the negative impact.

FRONTIER AIRLINES
The American airline is reviewing its full-year forecast as jet fuel ⁠prices have increased significantly since it issued the outlook, it said on March 17.

HONG KONG AIRLINES
The airline said it would raise fuel surcharges by up to 35.2% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284.

IAG
British Airways-owner IAG said on March 10 it did not plan to hike ticket prices immediately, as it had hedged much of its fuel for the short- to medium-term.

INDIGO
India's biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe. The company is also lobbying the Indian government to cut fuel taxes, sources told Reuters.

PAKISTAN INTERNATIONAL AIRLINES
The Pakistani carrier said on March 12 it would raise respective domestic and international flight fares by $20 and by up to $100, citing higher fuel surcharges.

QANTAS ‌AIRWAYS
The Australian airline said on March 10 it would hike fares on its international routes and was considering adding capacity on its existing Europe routes in the coming months.

SAS
The Scandinavian airline said on March 17 that it would cancel 1,000 flights in April because of high oil and jet fuel prices. For March, the airline said it had cancelled a "couple hundred" flights.

SAS, ⁠which had already increased flight prices, said that even if it tried to absorb the rising fuel costs, the price surge would still be a strike to the aviation industry.

THAI AIRWAYS
The Thailand-based carrier said on March 11 it would raise fares by 10-15% to address rising fuel costs.

UNITED AIRLINES
The Chicago-based airline is cutting unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said on March 20. At those levels, its annual fuel bill would increase more than twice the profit it earned in its best year ever, he added.

VIETNAM AIRLINES
The carrier 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 fuel price increases, according to local officials.

VIRGIN AUSTRALIA
Virgin Australia said it was adjusting fares to reflect rising cost pressures across the aviation sector, which it said were being significantly exacerbated by the situation in the Middle East.