Airlines across Asia-Pacific are raising fares as the Middle East conflict disrupts supplies and sends jet fuel prices soaring, straining operations.
TOKYO: Airlines across the Asia-Pacific region are implementing fare increases to offset a dramatic surge in jet fuel costs, driven by supply disruptions from the Middle East conflict.
Carriers including Qantas, Air India, and Cathay Pacific have announced or will soon introduce higher fares and surcharges. The average global price for aviation fuel hit USD 173.91 a barrel, nearly double January’s levels and significantly above crude oil prices.
This spike is attributed to refining costs and kerosene’s lower priority compared to petrol or diesel. The war has severely choked trade through the Strait of Hormuz, a vital conduit for nearly 20% of global oil production.
The impact is particularly acute for Asia, as over 80% of the oil and gas transiting the strait is destined for its markets. “Since early March 2026, aviation turbine fuel (ATF)… has seen significant price escalation due to supply interruptions,” Air India stated.
The airline noted that high excise duty and VAT on ATF in major Indian cities further magnify the financial strain. Air India will roll out increases in three phases, adding USD 4.30 to domestic flights and an extra USD 20 on Southeast Asia routes.
Surcharges for Europe will rise 25% to USD 125, and for North America by 33% to USD 200. Cathay Pacific also announced new surcharges after fuel prices doubled in March from the previous two-month average.
SpiceJet founder Ajay Singh called for tax reductions on jet fuel, warning that even USD 90 a barrel was “totally unsustainable”. He did not rule out grounding part of his fleet if prices continue to soar.
Qantas confirmed it is increasing fares, which will vary by route, after jet fuel costs rose up to 150% in a fortnight. “Despite the hedging measures, this situation leads to higher costs for the entire group,” it said.
An industry expert projected Qantas’s international fares would rise about 5%, with the war’s full impact felt in three to six months. Thai Airways said it could increase fares by 10-15% and had room to raise surcharges further if needed.
A Thai Airways spokesperson clarified that “prices remain fixed for now, though they are subject to change”. In Europe, SAS announced a temporary price increase, while others like Air France-KLM and Lufthansa are buffered by fuel hedging strategies.
The Sun Malaysia
