Global airlines hike fares as jet fuel costs soar amid Middle East tensions

Airlines worldwide are raising ticket prices as jet fuel costs surge following geopolitical tensions in the Middle East. The conflict between the US, Israel, and Iran has disrupted global kerosene supplies, forcing carriers to adjust fares and surcharges across routes.

The crisis began in early March 2026 when kerosene prices doubled. The closure of the Strait of Hormuz—responsible for 20% of global kerosene exports—cut off key supply routes. Refineries in Bahrain and Saudi Arabia also faced shortages, while shipping disruptions in the Gulf worsened the situation.

Qantas responded by increasing prices on international flights and reviewing extra capacity on its Europe services. Air New Zealand followed, raising economy-class fares by NZ$10 on domestic trips, NZ$20 on short-haul international routes, and NZ$90 on long-haul journeys. The airline cited volatile fuel markets as the reason. Other carriers took similar steps. Cathay Pacific will double fuel surcharges from March 18, while Hong Kong Airlines raised them by up to 35.2% on select routes. Air France added €50 to long-haul round-trip fares. SAS introduced temporary price adjustments, and Aegean Airlines warned of a major impact on its first-quarter profits. In Asia, Thai Airways and Pakistan International Airlines also lifted ticket prices. Vietnam Airlines, facing a 70% rise in operating costs, asked its government to suspend an environmental tax on jet fuel. United Airlines, meanwhile, expects a heavy blow to its quarterly earnings due to the fuel cost spike.

The price hikes come as airlines struggle with soaring operational expenses. Passengers now face higher fares across short and long-haul routes, with surcharges climbing sharply. The situation reflects broader disruptions in global energy markets caused by ongoing regional conflicts.