Global Airlines Raise Fares as Jet Fuel Costs Surge Higher
Major carriers including Air New Zealand and Qantas are raising ticket prices as jet fuel costs reach 200 dollars per barrel. Several airlines have also suspended financial forecasts while seeking government tax relief to manage rising expenses.
The global aviation industry is grappling with a dramatic surge in jet fuel prices, a direct consequence of the ongoing conflict involving the United States, Israel, and Iran. In recent days, fuel costs have climbed from a range of $85–$90 per barrel to as high as $150–$200 per barrel. For an industry where fuel typically represents up to 25% of total operating expenses, these price spikes have forced carriers to implement immediate fare hikes and reassess their financial projections. AIR NEW ZEALAND LTD was among the first to react, announcing broad increases to ticket prices. The carrier, based in New Zealand, has also suspended its fiscal 2026 earnings forecast, citing the unprecedented volatility in global energy markets. One-way economy fares will increase by NZ$10 on domestic routes, NZ$20 on short-haul international services, and NZ$90 on long-haul flights. In Hong Kong, CATHAY PACIFIC AIRWAYS has added extra flights to the United Kingdom and Switzerland to address disrupted travel routes. While the airline reviews its fuel surcharges monthly, it held them steady at $72.90 for flights to Europe and North America during the previous month. Meanwhile, fellow local carrier Hong Kong Airlines is raising its fuel surcharges by up to 35.2%. The most significant increases will affect routes to the Maldives, Bangladesh, and Nepal. The impact is also being felt in Australia, where Qantas Airways announced fare hikes for international routes starting in early March. The airline is also evaluating the addition of capacity on existing European routes to meet shifting demand. In Northern Europe, Scandinavian Airlines (SAS) confirmed it has implemented a temporary price adjustment to manage the rising costs. In Vietnam, Vietnam Airlines has approached the government for assistance. The carrier is requesting the removal of an environmental tax on jet fuel, noting that operating costs for domestic airlines have surged by approximately 70% due to the current price environment.
