Several airlines worldwide have responded to the sharp rise in jet fuel prices triggered by the ongoing war in Iran by introducing or increasing fuel surcharges, while others have trimmed flight schedules to manage elevated operating costs.
- Air India introduced phased fuel surcharges on domestic and international routes, with increases of up to fifty US dollars on long-haul tickets to Europe, North America and Australia after 18 March.
- Cathay Pacific raised its fuel surcharge on all routes, with a further increase from 1 April that roughly doubles the levy on many long-haul flights (for example, from around seventy three US dollars to one hundred and forty nine US dollars on certain sectors).
- Hong Kong Airlines increased fuel surcharges by up to 35pc from mid-March, with the largest rises on routes to the Maldives, Bangladesh and Nepal.
- AirAsia temporarily raised ticket prices and added or increased fuel surcharges, stating it would review them as market conditions evolve.
- Air India Express began applying fuel surcharges for the first time as part of the group-wide response.
- FlySafair (South Africa) implemented a temporary fuel surcharge from 12 March.
- Greater Bay Airlines (Hong Kong) raised surcharges on most routes from 1 April.
- Air Transat started adding a fuel surcharge to tickets.
- Korean Air significantly increased fuel surcharges from April, with some long-haul routes seeing more than a threefold rise.
Other carriers such as Qantas, SAS Scandinavian Airlines, Air New Zealand, British Airways (IAG) and Air France-KLM have announced general fare increases or warned of higher ticket prices without always using a separate “fuel surcharge” label, as many US and European majors prefer to embed costs into base fares.
Airlines Trimming Schedules
High fuel costs, combined with longer rerouted flights due to airspace restrictions, have prompted capacity cuts:
- SAS Scandinavian Airlines has cancelled around one thousand flights in April and is reviewing further schedule reductions.
- Air New Zealand has adjusted schedules and suspended its 2026 earnings guidance, with potential for more cuts if fuel prices remain elevated.
- European airlines including those in the Lufthansa Group and Air France-KLM have also signalled possible capacity adjustments, while several carriers are reviewing growth plans and new route launches.
- United Airlines announced it will trim approximately five per cent of its scheduled flights in the second and third quarters of 2026, describing the move as “pruning” less profitable services.. The airline is canceling unprofitable off-peak flights such as red-eye and midweek services, reduces capacity at Chicago O’Hare, and suspends routes to Tel Aviv and Dubai. United plans to restore the full schedule in the autumn while preparing for oil prices that could stay elevated at around €161 per barrel for the rest of 2026 and above €92 until the end of 2027.
- Most major US carriers (Delta, American and United) continue to report strong demand and are absorbing some costs through higher base fares rather than separate surcharges, though they warn that prolonged high fuel prices could force broader fare rises or additional schedule trimming.
The situation remains fluid, with many airlines reviewing surcharges every one to two weeks and monitoring jet fuel prices closely. Passengers on long-haul international routes are most affected, while short-haul and domestic services see smaller or no direct surcharge impacts in some markets.
