Travellers booking flights for Easter or summer getaways should brace themselves to pay significantly more for air tickets – with some of the world’s biggest airlines this week announcing price hikes as the cost of aviation fuel soars.
The latest Middle East conflict, just two weeks old, has sent the price of crude oil rising by a third, with fuel used to supply the world’s airlines soaring even higher.
The war between the US/Israel and Iran has seen the main transit route for jet fuel from the Middle East, the Strait of Hormuz – which lies between the Persian Gulf and the Gulf of Oman – effectively closed in recent days.
The region currently supplies around 50 per cent of airlines based in Europe, with consumers already taking the hit directly in increased flight prices. Those with flights already booked won’t be asked to pay additional fees.
The price of a tonne of jet fuel bound for north-west Europe before the first strikes on Iran on February 28th was around $830 per tonne. Costs have almost doubled in the weeks since, with aviation fuel now up at more than $1,500 a tonne.
Dr Sen, founder of Market Intelligence at Energy Aspects, told the Commons Treasury this week that such dramatic jet fuel price rises would have an almost immediate impact on what travellers pay for their plane seats.
Global oil prices have risen to their highest levels since 2022 following an escalation of the US-Israel war with Iran – with jet fuel hit particularly hard, with fuel now up at more than $1,500 a tonne
Brace! Air France this week said it would raise economy class fares for short haul destinations by 50 euros (£43) to reflect rocketing jet fuel prices
She said: ‘Everyone is talking about crude oil but there are prices for jet fuel that have gone above $300 [a barrel] – it is crazy what is going on.
‘So much production is focused in the Middle East… it is not going to be possible to replace that through other sources.
‘I am expecting quite significant rises in air fares. Some airlines hedge (against price rises) which will help a bit, but we should absolutely be expecting higher air fares for at least the next couple of months.’
Major airlines to move early on passing on prices to passengers included Qantas, Air New Zealand and Scandinavia’s SAS and many more have now followed.
IAG, which owns British Airways, said a successful hedging strategy meant it had no plans for immediate price rises.
Major European airlines including Wizz, Ryanair, easyJet and Jet2 have yet to comment on whether fares will rise.
Here’s the latest list of which airlines have increased fuel surcharges so far:
QANTAS
The Australian carrier says flight prices will increase on its long haul routes, particularly those that transit through the Middle East.
UNITED AIRLINES
American airline United’s CEO Scott Kirby said last week that profits would take a ‘meaningful’ hit because of the Middle East conflict – and if oil prices continued, fares would likely rise quickly as a result.
AIR FRANCE AND KLM
The Dutch and French carriers, airline partners, have both increased fares.
KKM released a statement this week saying rising oil prices ‘will impact ticket prices, with the increase varying by destination and class.’
An Air France spokesperson said this week that economy fares would increase by 50 euros (£43) for a return flight.
NORWEGIAN
Norwegian newspaper Dagblade reported that low-cost airline Norwegian confirmed price adjustments to factor in elevated fuel costs.
Fares would ascend rapidly if fuel prices continued to rise, United Airlines’ CEO Scott Kirby said this week
NORSE ATLANTIC AIRWAYS
The Norwegian flyer, which counts long haul destinations including Los Angeles, Cape Town and Phuket on its destination list said increased fuel prices will be reflected in current ticket prices.
SAS SCANDINAVIAN AIRLINES
Popular Scandi city break airline SAS revealed earlier this week that it had adjusted flight prices to cover the rising cost of aviation fuel.
AIR TRANSAT
Canadian low-cost long haul airline Air Transat said fuel surcharges would be increased, with Jean-François Pruneau, the airline’s chief financial officer, saying on Wednesday: ‘We have increased fuel surcharges on Europe. However, this is blended in the total price
‘What we’re also doing is currently raising fares on peak travel dates and routes where we see less competition, where we have more flexibility.’
AIR CANADA
Air Canada is taking a similar stance; a spokesperson told CBC News this week the airlines current fares ‘continue to be adjusted to reflect these higher fuel costs.’
AIR NEW ZEALAND
One of the first airlines to announce prices would increase, Air New Zealand has added NZ$20 (£8.80) on one way short-haul international services and NZ$90 (£39.00) on one way long-haul flights.
AIR INDIA
The Indian airline and its short haul sibling Air India Express introduced surcharges on both domestic and international routes on Thursday.
AIR ASIA
Malaysian low-cost airline AirAsia announced a temporary increase on ticket prices due to fuel surcharges on Thursday.
HONG KONG AIRLINES
Hong Kong Airlines said surcharges of up to 35 per cent would be introduced from Thursday this week on air fares.
CATHAY PACIFIC AIRWAYS
Hong Kong-based Cathay Pacific said it will review surcharges again next month but has added $72.90 (£54) on flights to and from Hong Kong and Europe and North America in recent days.
THAI AIRWAYS
Those heading to Thailand via Thai Airways who haven’t booked yet can expect a fuel surcharge price rise of up to 15 per cent per ticket.
VIETNAM AIRLINES
The Far Eastern airline said operating costs have risen by 70 per cent as a direct result of the aviation fuel price rises – and the carrier has requested government assistance to remove an environmental tax on jet fuel.
