Price Hikes, Outlook Cuts: What Airlines Are Doing As Fuel Costs Surge Amid Iran War

A surge in jet fuel prices, driven by the ongoing U.S.-Israeli war on Iran, has upended the global aviation industry, prompting airlines to raise fares and revise financial outlooks.

Jet fuel prices have soared from $85–$90 per barrel to $150–$200 per barrel in recent days for an industry where fuel accounts for up to a quarter of operating expenses.

Below is a list of how airlines are responding, in alphabetical order:

Air New Zealand

The airline was on Tuesday one of the first to announce broad increases to ticket prices and also suspended its fiscal 2026 earnings forecast due to unprecedented volatility in global jet fuel markets.

The price hikes for one-way economy fares are set at NZ$10 ($6) on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul flights, with further price, network and schedule changes possible if jet fuel costs remain elevated.

Cathay Pacific Airways

The Hong Kong airline said on Tuesday it had implemented additional flights to London and Zurich in March to address disrupted travel routes. The airline said it reviews its fuel surcharges monthly and held them steady last month at $72.90 on flights between Hong Kong and Europe or North America. HONG KONG AIRLINES

The local carrier said it would raise fuel surcharges by up to 35.2% from Thursday, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal where charges will rise to 384 Hong Kong dollars ($49) from 284 Hong Kong dollars. QANTAS AIRWAYS

The Australian airline said on Tuesday it would hike fares on its international routes for the week of March 9 and that it is considering adding capacity on its existing Europe routes in the coming months.

SAS (Scandinavian Airlines)

The dominant airline in the Nordic countries said on Tuesday that it had implemented a temporary price adjustment due to rising jet fuel prices.

Vietnam Airlines 

The Vietnam-based airline said it had requested government assistance to remove an environmental tax on jet fuel, as operating costs for Vietnamese airlines have surged by around 70% due to jet fuel prices rise, according to local officials.