Global aviation is facing significant turbulence as airlines grapple with a crisis in jet fuel supply, leading to flight cancellations and new charges being introduced.
The surge in jet fuel prices, soaring from around $85-$90 per barrel to as high as $150-$200, is attributed to heightened tensions in the US-Israeli conflict with Iran.
This unprecedented cost escalation has compelled airlines to raise ticket prices, reduce flight routes, and revise financial projections, sparking concerns of severe disruptions. According to International Energy Agency head Fatih Birol, Europe could see jet fuel supplies running out in as little as six weeks if the Strait of Hormuz remains shut.
Over 30 airlines worldwide have been forced to adjust operations due to the fuel crisis:
AirAsia X – Trimmed approximately 10% of flights and imposed a fuel surcharge of about 20%.
Air France-KLM – Increased long-haul and cabin fares by 50 euros per round trip, canceled flights, and KLM is set to eliminate 160 European services in the coming months.
Air India – Implemented distance-based fuel surcharges due to insufficient coverage of rising costs.
Air New Zealand – Reduced flights during May and June, raised fares, and suspended full-year earnings forecasts.
Akasa Air – Introduced fuel surcharges ranging from 199 to 1,300 Indian rupees on domestic and international routes.
Alaska Air – Heightened checked baggage fees by up to $150 on North American and Hawaiian Airlines routes.
American Airlines – Raised baggage fees and curtailed some economy benefits.
Asiana Airlines – Reduced 22 flights between April and July due to fuel expenses.
Cathay Pacific – Cancelled a portion of flights and raised fuel surcharges from mid-May to end of June.
China Eastern Airlines – Announced increased fuel surcharges for domestic flights from April 5.
Delta Airlines – Decreased capacity and raised checked bag fees.
Easyjet – Forewarned of higher ticket prices post-summer due to expiring fuel hedges.
Greater Bay Airlines – Planned to raise fuel surcharges on most routes from April 1.
Hong Kong Airlines – Increased fuel surcharges by up to 35% from March 12.
Indigo – Introduced fuel charges on flights from March 14.
Jetblue Airways – Adjusted fees for services like checked baggage due to rising costs.
Lufthansa – Grounded planes and reduced fleet size.
Norse Atlantic Airways – Terminated London Gatwick to Los Angeles route due to fuel expenses.
Pakistan International Airlines – Hiked domestic and international fares.
SAS – Planned to cancel 1,000 flights in April after fare hikes.
Spring Airlines – Planned to raise domestic fuel surcharges from April 5.
Southwest Airlines – Raised baggage fees on specific routes.
SunExpress – Added a temporary fuel surcharge on Turkey-Europe routes.
TAP Air Portugal – Implemented fare increases to counter higher fuel prices.
Thai Airways – Increased fares by up to 15%.
United Airlines – Revised routes to cut losses, raised baggage fees, and maintained bookings despite fuel cost spikes.
VietJet Air – Reduced flights due to fuel shortages.
Vietnam Airlines – Planned to cancel 23 domestic flights weekly starting April and sought government aid to eliminate jet fuel taxes.
Virgin Atlantic – Added fuel surcharges to fares and anticipated continued financial challenges.
Volotea – Implemented a pricing policy potentially adding fuel surcharges per passenger.
WestJet – Reduced seats, merged flights, and added a C$60 fuel surcharge on certain bookings.
