Sydney, Australia. Qantas Airways and Air New Zealand said on Tuesday they are hiking fares due to the Middle East conflict, highlighting pressure on airlines from sharply higher fuel costs.
Jet fuel prices surge and outlook suspended
Air New Zealand said jet fuel prices, which were around $85 to $90 per barrel prior to the conflict, have increased to between $150 and $200 per barrel in recent days. The carrier said it suspended its financial outlook for 2026 due to uncertainty over the conflict.
Oil price rise disrupts travel
The U.S.-Israeli war on Iran has sent oil prices surging, disrupting global travel, pushing airline tickets on some routes higher, and raising fears of a travel slump and potential widespread grounding of planes.
Middle Eastern airspace disruption
Flight tracking service Flightradar24 said on X that planes arriving into Dubai were briefly placed in a holding pattern on Tuesday morning due to a potential missile attack. The planes eventually landed.
Qantas explores capacity changes and reports strong demand
Qantas said it was increasing international fares and exploring options to redeploy capacity to Europe as airlines and passengers seek to avoid disruptions in the Middle East, where drone and missile fire have curtailed flights. The airline said its flights to Europe are more than 90% full in March, compared with the usual 75% at this time of year.
Capacity constraints lift Asia-Europe airfares
Airfares have risen on Asia-Europe routes due to airspace closures and capacity constraints. Hong Kong’s Cathay Pacific Airways said on Tuesday it was adding extra flights to London and Zurich in March.
Air New Zealand fare increases and potential further changes
Air New Zealand said it raised one-way economy fares by NZ$10 (€5) on domestic routes, NZ$20 (€17) on short-haul international services, and NZ$90 (€77) on long-haul flights. It said further price, network and schedule changes are possible if jet fuel costs remain elevated.
Hong Kong Airlines fuel surcharge increase
Hong Kong Airlines said on its website it would raise its 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 HK$384 ($49) from HK$284.
Cathay Pacific fuel surcharge review
Cathay Pacific said it reviews its fuel surcharges on a monthly basis and kept them flat last month at $72.90 each way on flights between Hong Kong and Europe and North America before the conflict began.
How have recent fuel cost increases affected the prices of flights you are planning to take?