Middle East conflict disrupts aviation industry, fuel prices surge airlines adjust prices

Due to the delay caused by the Middle East conflict, the price of aviation fuel has risen, prompting several airlines to announce hikes in ticket prices or fuel surcharges and to adjust their flights. Additionally, changes in flight routes and airspace restrictions have increased the operating pressure on the global aviation industry. The US military strike on Iran has disrupted maritime transport in the Strait of Hormuz, affecting the global oil supply chain. Airlines such as Qantas, Scandinavian Airlines, Air New Zealand, and Air India have subsequently announced increases in ticket prices or fuel surcharges. Air New Zealand stated that before the US strike on Iran on February 28, the price of aviation fuel was around $85 to $90 per barrel, but has now soared to between $150 and $200. In response to this situation, the company has raised the one-way economy class ticket price for domestic flights by $10 NZD, short-haul international flights by $20 NZD, and long-haul flights by $90 NZD. The company also mentioned that if aviation fuel costs continue to remain high, they may further adjust ticket prices and flight schedules in the future. Due to the uncertainty brought about by the conflict, the company has suspended its profit forecast for the 2026 fiscal year. Fuel costs are one of the major expenditure for airlines. A spokesperson for Scandinavian Airlines, as reported by Reuters on the 10th, said, "Such a significant increase has forced us to take measures to maintain stable and reliable operations," and the company has temporarily adjusted prices. Several airlines, including Lufthansa, Finnair, Ryanair, and International Airlines Group, have implemented hedging measures to lock in fixed prices for a portion of their fuel demand. Finnair mentioned that more than 80% of its fuel purchases in the first quarter have been hedged, but if the conflict continues, not only fuel prices but even fuel supply could be impacted in the short term. The International Airlines Group, formed by British Airways and Iberia Airlines of Spain, stated that there are currently no plans to adjust ticket prices. However, British Airways mentioned that due to "ongoing uncertainty," they have prematurely ended their winter flights to Abu Dhabi in the UAE. In addition to rising oil prices, the conflicts in the Middle East have disrupted associated airspace. A 24-hour flight radar website providing real-time flight statuses stated on social media platform X on the 10th that some flights to Dubai in the UAE were circling in the air due to missile threats. Airlines such as Lufthansa Group and Air France-KLM Group have recently announced the extension of the suspension of some regular commercial flights in the Middle East. Airlines like Qantas are exploring the possibility of transferring some of their capacity to European routes.