Airlines Increase Ticket Prices and Fuel Levies Amid Middle East Tensions
Airlines increase fares and fuel surcharges as West Asia conflict drives oil prices and demand for alternate routes.
Airlines across Europe and Asia are increasing fares and raising fuel surcharges as the ongoing conflict in West Asia pushes oil prices higher and raises concerns about jet-fuel shortages if fighting continues. The disruptions have also prompted surging demand for alternative flight routes that bypass the Middle East, further driving up ticket prices.
According to analytics firm Cirium Ltd, more than 43,000 flights scheduled in and out of the Middle East were canceled between February 28 and March 10, affecting both passenger and cargo operations. Carriers are responding by adjusting pricing and revising fuel surcharges across domestic and international routes.
Southeast Asia’s largest budget carrier, AirAsia, announced fare hikes and fuel surcharge adjustments without specifying amounts, stating that it will monitor market conditions and respond proactively. Meanwhile, Air India and Air India Express will implement phased fuel surcharges starting March 12, ranging from ₹399 for domestic and South Asia flights to $200 for North America and Australia beginning March 18.
Also Read: IndiGo Operates Flights to Eight Middle East Destinations Amid US-Iran War
Other carriers implementing price adjustments include Air New Zealand, which raised fares on March 10 and suspended earnings guidance due to volatile fuel costs, and Cathay Pacific, which announced imminent fuel surcharge increases. Similarly, Hong Kong Airlines will raise surcharges on routes to destinations including Australia, North America, the Maldives, Nepal, and Bangladesh starting March 12.
Several European and Australian carriers are also adjusting pricing. Qantas is raising international fares by about 5% on average, citing a 150% spike in jet-fuel prices in the past two weeks, while SAS has introduced temporary fuel-related price adjustments. Other carriers including Finnair, Japan Airlines, Norse Atlantic, Virgin Atlantic, Thai Airways, and SpiceJet are taking similar measures to reflect increased fuel costs.
SpiceJet founder Ajay Singh warned that oil prices at $90 a barrel are unsustainable and called for government intervention to lower jet-fuel taxes. He added that airlines may have to reconsider expansion plans or even ground aircraft if high fuel prices persist. Industry experts note that rising fares and surcharges will likely continue until regional tensions ease and oil markets stabilise.
Also Read: Government Prioritises Domestic LPG Supply Amid Middle East Oil Disruption
