Airlines across Europe and Asia are increasing fares and raising fuel surcharges as the Iran war sends oil prices swinging wildly and stokes fears of jet-fuel shortages if the fighting persists.
Demand for alternative routes that bypass the Middle East is also surging, pushing up ticket prices. More than 43,000 flights scheduled in and out of the Middle East were canceled between Feb. 28 and March 10, according to data from analytics firm Cirium Ltd.
Here is a rolling list of airlines that have announced increases to fares and fuel surcharges:
AirAsia
Southeast Asia's biggest budget carrier has raised fares and adjusted fuel surcharges, but without specifying by how much. The airline said it will “dynamically monitor market conditions and react proactively as and when needed.”
Air India
Air India and Air India Express will phase in fuel surcharges across domestic and international routes from March 12.
- From March 12 a surcharge of 399 rupees ($4.35) will be added to domestic flights and services to South Asia, West Asia and the Middle East. Surcharges to Southeast Asia will rise to $60 from $40, and for Africa to $90 from $60.
- From March 18, the surcharge for Europe will rise $25 to $125, and to North America and Australia by $50 to $200.
- Surcharges to Hong Kong, Japan and South Korea to be announced later
Air New Zealand
The airline said March 10 it will raise fares by an unspecified amount, and may need to take further pricing action and adjust its network and schedule if fuel costs remain elevated. The company also suspended its earnings guidance, saying assumptions on fuel costs announced late last month are no longer valid.
Cathay Pacific
The Hong Kong airline says it will raise fuel surcharges on flights imminently to cover its costs.
Finnair
In the aftermath of Russia's invasion of Ukraine, the Finnish carrier pivoted to relying on a long-haul network that flew to Doha and Dubai. The airline has canceled all flights through those cities at least through the end of this month, and it says the current turmoil in oil markets will be reflected in ticket prices. Thus, there's no need for a separate fuel charge.
Hong Kong Airlines
Hong Kong Airlines increased fuel surcharges, starting March 12, on a range of routes, including a 35% increase, or HK$100 ($12.80), to the Maldives, Nepal and Bangladesh. The levy on long-haul destinations including Australia and North America will rise HK$150 to HK$739.
ALSO READ: Air India, Air India Express To Operate 58 Flights To And From West Asia On March 11 — Check Details
Japan Airlines
JAL, which already applies a fuel surcharge on international routes, said it has no plans to bring forward changes to levies before April 1.
Norse Atlantic
The Norwegian budget airline said higher oil prices likely will be reflected in fares or as a specific surcharge.
Qantas
Australia's largest carrier is raising fares on international routes by around 5% on average. Jet fuel prices have risen by as much as 150% in the past two weeks, which is driving up costs across the business, Qantas said. Flights on European routes, including Perth-London, Perth-Paris and services via Singapore, are more than 90% full this month, up from a typical load factor of 75% at this time of year.
SAS
The Scandinavian carrier introduced what it's calling temporary fuel-related price adjustments given the rapid increase in oil prices.
SpiceJet
Founder Ajay Singh said carriers will have “no choice” but to impose a fuel surcharge. He is looking for the government to lower jet fuel taxes, warning that even $90 a barrel oil is “completely unsustainable.” Singh said SpiceJet has considered grounding planes if high oil prices persist and that airlines may have to rethink their expansion plans in such an environment.
Thai Airways
The carrier is planning to raise ticket prices 10%-15% to cover surging fuel costs.
Virgin Atlantic
The UK-based airline hedges against high oil prices, though it has a dynamic pricing system based on passenger demand.
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