From AirAsia to Qantas, airlines raise fares as Iran war fuels oil price surge

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 cancelled between February 28 and March 10, according to data from analytics firm Cirium.

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.

Air New Zealand

The airline said on Tuesday that 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 The company also suspended its earnings guidance, saying assumptions on fuel costs announced late last month are no longer valid.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

Cathay Pacific Airways is doubling its passenger fuel surcharge starting March 18. The levy on a long-haul flight will rise to HK$1,164 (US$149) from HK$569. Short- and medium-haul surcharges will increase by a similar ratio, according to the carrier.

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 cancelled 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 is no need for a separate fuel charge.

Hong Kong Airlines

Hong Kong Airlines increased fuel surcharges, starting Thursday, on a range of routes, including a 35 per cent increase, or HK$100 (US$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.

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Iran war sends oil prices surging, prompting panic buying and rationing in parts of Asia

Iran war sends oil prices surging, prompting panic buying and rationing in parts of Asia

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 are likely to be reflected in fares or as a specific surcharge.

Qantas

Australia’s largest carrier is raising fares on international routes by around 5 per cent on average. Jet fuel prices have risen by as much as 150 per cent 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 per cent full this month, up from a typical load factor of 75 per cent at this time of year.

SAS

The Scandinavian carrier introduced what it is 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 US$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 per cent to 15 per cent 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.