Air fares could rise by 30 to 80pc due to the escalating conflict in the Middle East involving the United States Israel and Iran.
Jet fuel prices have surged more than 80pc with some reports showing a 50pc weekly increase to around $3.88 per gallon. Airlines are rerouting flights to avoid unsafe airspace adding over an hour to journeys and increasing fuel consumption.
Hedging protections for many airlines lapse or will be reduced significantly by the busy summer season.
Jet fuel prices have surged more than 80%, reaching a four-year high of approximately $1,528 per tonne. Some regions have seen fuel costs jump by 50% in a single week.
Rerouting & Operational Costs: Major airspace closures over Iran, Iraq, and the Gulf have forced airlines to divert flights, adding 1 to 3 hours to journey times. These detours significantly increase fuel consumption and crew expenses.
Over 23,000 flights have been cancelled globally since the conflict escalated, creating a massive gap in seat availability.
While many airlines (e.g., British Airways, Ryanair) use fuel hedging to stabilize costs, these protections are set to reduce significantly by the busy 2026 summer season, forcing carriers to pass costs to travelers.
The Europe to Asia “aviation super-highway” is heavily impacted. Economy tickets on routes like London to Singapore have seen extreme, short-term premiums, with some one-way fares temporarily quoted as high as S$10,916.
North America to India routes from cities like New York and Chicago to Delhi and Mumbai have seen price increases exceeding 100% to 150% due to the loss of transit through Middle Eastern airspace.
Long-haul capacity from Australia has plummeted, with fares to Europe already jumping by hundreds of euro ahead of the Easter period.
