The rise in jet fuel prices caused by the war between the United States, Israel and Iran has led the global aviation industry to raise prices and review financial forecasts. Jet fuel prices have risen from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, putting pressure on the aviation industry, where fuel accounts for up to a quarter of operating expenses.
Airlines, including Air India, IndiGo and United Airlines, have responded to rising fuel costs by increasing ticket prices and adding fuel surcharges on many routes, while also raising baggage and service fees.
Many airlines are reviewing their financial forecasts, delaying expansion plans, and focusing on cost-cutting and efficiency measures.
Air Asia
The CEO of Malaysian airline AirAsia said that the company responded to the price hike by reducing 10% of its flights across the group, while imposing an additional fee of about 20% on fuel in general.
KLM Air France
Air France said it planned to increase long-distance ticket prices to address rising fuel costs, with cabin fares set to rise by 50 euros (about Rs 5,000) per round trip.
Air India
Air India has announced a review of its fuel surcharge from a fixed domestic surcharge to a distance-based network. Passengers traveling short distances (0-500km) will now pay an additional amount, the airline said $$299 per sector, while those traveling on longer routes exceeding 2,000 km will be charged a fee. $899.
The Tata group-owned transport company had earlier said that the new surcharge structure will come into effect from April 8 for domestic routes and April 10 for major international sectors.
Air New Zealand
The airline was among the first to announce widespread increases in ticket prices when the conflict broke out. Since the fuel price increase, Air New Zealand said it would reduce its flights during May and June and raise prices. It also suspended full-year earnings forecasts due to fuel market volatility.
Acasa Airlines
Another Indian airline, Acasa Air, announced a price increase last month, citing a “significant increase in the price of aviation turbine fuel.” Effective March 15, the airline said it will introduce fuel surcharges ranging from $199 to 1300 on local and international routes for all new bookings.
The airlines also said that the new prices will not apply to any bookings made before 00:01 on 15 March 2026.
Alaska Airlines
The American airline said it will increase the fee for the first checked bag by $5 ( $462) and by 10 dollars ( $925) for the second on its North American flights, as well as for its Hawaiian Airlines unit. The price of the third bag was raised from $50 to $200.
American airlines
US airlines also followed similar measures to increase checked baggage fees by $10 for each of the first and second checked bags and by $150 for the third checked bag on short-haul domestic and international flights. The airline has also reduced some benefits for economy class passengers.
Delta Airlines
Delta said it will reduce capacity by about 3.5 percentage points from its original plan and increase fees on checked bags in an attempt to offset rising jet fuel costs with a $10 increase. $925) on the price of the first and second bags and $50 ( $4,629) in addition to the third registered bag.
Delta’s CEO said it will delay updating its full-year forecast given uncertainty about how long fuel prices will last.
Indigo
India’s largest airline said it will impose fuel surcharges on domestic and international flights, including a new fuel surcharge amounting to $1.5 billion. $950 per sector on internal roads $10,000 on long-haul international flights for all new bookings from April 2.
Pakistan International Airlines
The carrier said it will increase domestic ticket prices by $20 ( $1,660) and international rates up to $100 ( $8300), citing high fuel surcharges.
Turkish Airlines and Lufthansa
SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it will impose a temporary fuel surcharge of €10 (1,085) per passenger from May 1 on routes between Turkey and Europe. Additional fees will apply to bookings made on or after April 1 for departures on or after May 1.
United Airlines
United Airlines said it will cut unprofitable flights over the next two quarters as it braces for oil prices to remain above $100 (Rs 8,300) until the end of 2027, according to CEO Scott Kirby. Andrew Nocella, the airline’s chief commercial officer, said the company was able to raise prices without significantly impacting bookings despite a significant rise in jet fuel costs. It also increases checked baggage fees by $10 ( $830) for the first and second bags on routes across the United States, Mexico, Canada and Latin America.
(With inputs from Reuters)
