Analysts have warned that travellers should expect further ticket price rises and more cancelled flights even as the cease fire kicks in. The Gulf remains a major source of aviation fuel accounting for about 50pc of Europe imports.
The increase in jet fuel prices reflects the role Middle Eastern refineries play in supplies. The Al Zour refinery in Kuwait alone provides roughly 10pc of Europe jet fuel imports according to Energy Intelligence.
Air India and Air New Zealand have announced they will cut flights and hike fares as jet fuel prices have surged due to the US Israeli war with Iran. Many airlines around the world have taken emergency measures to counter the rising cost of fuel which typically makes up 20 to 40pc of their operating costs. Last week the benchmark European jet fuel price hit an all time high of €1,838 per tonne compared with €831 before the war began.
Air New Zealand cancellations have hit routes in and out of Auckland Wellington and Christchurch with flights to smaller airports unchanged. The airline which had already cut some flights last month said on Tuesday the vast majority of customers affected by the cancellations were being offered alternative flights on the same day. Air India has changed the fuel surcharge on its domestic flights from a flat fee to one based on the distance of the flight. It also increased its surcharges for international flights due to one of the most challenging fuel cost environments that airlines globally have faced in recent years.
Air New Zealand shared in awirtten statement: “Like airlines globally we are experiencing jet fuel prices that are more than double what they would usually be.”
