Airlines increase airfares as fuel costs rise amid conflict in the Middle East | News
Australia’s Qantas Airways, Scandinavia’s Scandinavian Airlines (SAS) and Air New Zealand announced fare increases on Tuesday, citing a sudden increase in jet fuel costs linked to the escalating conflict in the Middle East.
The three airlines said the spike in energy prices had significantly increased operating costs, forcing them to pass some of the burden on to passengers through higher ticket prices. Airlines are particularly sensitive to fluctuations in fuel prices because fuel typically accounts for a significant portion of operating costs.
The increase in costs has been caused by the disruption of global oil markets due to the conflict in the Middle East, which has caused jet fuel prices to rise sharply in recent days. According to industry estimates, fuel prices that previously cost between $85 and $90 per barrel have risen to between $150 and $200, putting severe pressure on airline margins.
Qantas said it would increase fares on international routes as the airline struggles with rising fuel costs and operational challenges related to the conflict. The Australian airline is also exploring how it deploys aircraft on long-haul routes, particularly to Europe, where demand remains high despite airspace disruptions in the region.
SAS also confirmed it had introduced temporary price increases, saying the speed and magnitude of the fuel price spike left the airline little choice but to adjust ticket prices. The Scandinavian airline said the measure was necessary to maintain stable operations during a period of volatile energy markets.
Meanwhile, Air New Zealand announced fare adjustments to its network. The airline increased one-way economy fares by NZ$10 on domestic routes, NZ$20 on short-haul international flights and NZ$90 on long-haul flights. She warned that further changes could follow if fuel prices remain high.
Air New Zealand also signaled the uncertainty facing the aviation industry by suspending its 2026 financial guidance, noting that rapidly changing fuel costs make it difficult to predict profits.
The conflict has also led to wider challenges for airlines, including airspace restrictions and the need to divert flights away from parts of the Middle East. These changes have increased flight times and fuel consumption, further driving up costs across the industry.
Analysts say if oil prices remain high, more airlines around the world will be forced to raise fares or reduce capacity to protect profitability. The developments show how geopolitical tensions can quickly ripple through global travel markets, impacting both airline finances and passenger ticket prices.
