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A surge in jet fuel prices driven by the US-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise financial outlooks. Here is how airlines have been responding so far this month:
AEGEAN AIRLINES: The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a ‘notable impact’ on its first-quarter results.
AIR FRANCE-KLM: The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to 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 full-year earnings forecast due to fuel market volatility. The price increases 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 it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.
AMERICAN AIRLINES: The US carrier said it expected a $400 million increase in first-quarter expenses as fuel prices surge.
CATHAY PACIFIC: The Hong Kong airline said it would raise fuel surcharges on all routes from April 1, its second increase in about two weeks after a March 18 hike, and review them every two weeks. The carrier, which reviews fuel surcharges monthly, 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 the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.
EASYJET: EasyJet CEO Kenton Jarvis said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.
GREATER BAY AIRLINES: Hong Kong-based Greater Bay Airlines said it would raise fuel surcharges on most routes from April 1 due to higher fuel prices linked to the Iran war, while keeping charges unchanged on mainland China and Japan routes. Its surcharge for flights between Hong Kong and the Philippines will more than double, the carrier said.
FRONTIER AIRLINES: The US airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.
HONG KONG AIRLINES: The airline said it would raise fuel surcharges by up to 35 per cent 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 increase ticket prices immediately, as it has 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.
JETBLUE AIRWAYS: The US-based low-cost carrier said it was increasing fees for optional services such as checked baggage as it experiences ‘rising operating costs.’ Baggage prices will rise by either $4 or $9, the company said.
PAKISTAN INTERNATIONAL AIRLINES: The carrier said it would raise domestic flight fares by $20 and international fares by up to $100, citing higher fuel surcharges.
PHILIPPINE AIRLINES: The airline said it had adequate fuel supply to support scheduled operations, but did not have visibility beyond May to June. Company president Richard Nuttall told CNBC the Philippines might eventually consider measures such as rationing how much fuel airlines can purchase, which a few countries have already implemented.
QANTAS AIRWAYS: The Australian airline, which had already said it would raise international fares, said on March 26 it would add flights to Rome, Paris and Singapore. It said it was monitoring fuel security, fuel prices and demand, and could make further changes.
SAS: The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices. For March, it 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 blow to the aviation industry.
SPRING AIRLINES: The budget Chinese airline said it would raise fuel surcharges on domestic flights from April 5, with details to be announced later.
THAI AIRWAYS: The Thailand-based carrier said it would raise fares by 10 per cent to 15 per cent to address rising fuel costs.
TURKISH AIRLINES, LUFTHANSA: SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros ($11.46) per passenger from May 1 on routes between Turkey and mainland Europe. The surcharge will apply to bookings made on or after April 1 for departures on or after May 1.
UNITED AIRLINES: The US 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. United has been able to raise fares without materially hurting bookings in response to the rapid increase in oil and jet fuel prices, Chief Commercial Officer Andrew Nocella said.
VIETJET: The Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.
VIETNAM AIRLINES: The carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam’s aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.
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.