<div id="readability-page-1"><div>A SURGE in jet fuel prices from US$85-$90 to US$150-$200 per barrel amid the US-Israeli war on Iran has blindsided the aviation industry, where fuel accounts for up to a quarter of operating expenses, forcing airlines to raise fares and revise their financial outlooks.Below is a list of how airlines are responding, in alphabetical order:Aegean AirlinesThe Greek airline expects suspended Middle East flights and a spike in fuel prices to have a “notable impact” on its first-quarter results.AirAsia XThe Malaysian airline’s executives said the company had cut 10 per cent of flights across the group, with a surcharge of about 20 per cent on fuel in general.<div><div><h3>Navigate Asia in a new global order</h3>Get the insights delivered to your inbox.</div></div>Air CanadaCanada’s largest carrier has suspended its full-year guidance due to jet fuel price volatility.The company had previously announced plans to trim four of its 38 daily flights to New York due to higher fuel prices.<div><div><div>SEE ALSO<div><div><div><div><img height="3527" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/bd0967e50ff621acf0429d57722d74cfac2ed5e3624d4b768a873914835562d6/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5174" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/bd0967e50ff621acf0429d57722d74cfac2ed5e3624d4b768a873914835562d6/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></div><h3>AirAsia close to ordering about 150 Airbus short-haul planes</h3></div></div><div><div><div><img height="3860" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/3c9ff826470c3cf3f2068fda2146685dd0fa6d59566f40e4bd25e577d173ab8b/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5754" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/3c9ff826470c3cf3f2068fda2146685dd0fa6d59566f40e4bd25e577d173ab8b/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></div><h3>Air India CEO search narrows to Singapore Airlines exec Kannan and insider Aggarwal: sources</h3></div></div><div><div><div><img height="2082" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/87f7ec44d23b9ab3e89bf94ac13b6f5b3aabf5f21930eaa6a0b731fa06dcb5ec/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="3192" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/87f7ec44d23b9ab3e89bf94ac13b6f5b3aabf5f21930eaa6a0b731fa06dcb5ec/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></div><h3>SIA to use Starlink for in-flight Wi-Fi from first quarter of 2027</h3></div></div></div></div></div></div>Air China, China Southern Airlines, China Eastern AirlinesChina’s ‘big three’ airlines have lifted surcharges on domestic routes to 60 yuan (S$11.20) for flights under 800 km and 120 yuan for those over 800 km, from 10 yuan and 20 yuan, respectively.Air France-KLMThe airline group said it expected a US$2.4 billion increase in its fuel bill this year and downgraded its capacity outlook to an increase of 2 per cent to 4 per cent from 2025. It previously expected an increase of 3 per cent to 5 per cent.The group previously announced plans to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros (S$75.30) per round trip.The group’s Dutch arm KLM said on April 16 it would cancel 160 flights in Europe in the coming month due to rising fuel costs.Air IndiaThe Indian carrier said it would revise its fuel surcharge from a flat domestic surcharge to a distance-based grid. It said surcharges on international routes did not compensate for the exponential rise in fuel prices.Air New ZealandThe airline said on April 7 it would slash flights through May and June and hike fares, having been one of the first to announce broad increases to ticket prices when the conflict broke out. It also suspended its full-year earnings forecast due to fuel market volatility.Air TransatThe Canadian airline said it would reduce planned capacity by 6 per cent from May until October this year, with cuts expected on routes to Europe and the Caribbean and its service to Cuba remaining suspended until October.Akasa AirIndia’s Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees (S$2.60 to S$18) on domestic and international flights.Alaska AirThe carrier withdrew its full-year profit forecast and warned of a steep hit to second-quarter earnings as the sharp rise in fuel prices puts pressure on margins. It has also trimmed capacity in some markets.American AirlinesThe US carrier slashed its 2026 profit forecast, pushing the lower end of expectations to a loss, and said it expected its jet fuel bill to increase by more than US$4 billion this year.It has hiked checked baggage fees by US$10 each for the first and second bags and by US$150 for the third bag on domestic and short-haul international flights, and trimmed certain benefits for economy passengers.ANAThe Japanese airline said higher fuel prices would lift costs by about 140 billion yen (S$1.1 billion) this year, though hedging, fares and cost cuts are expected to limit the impact to around 60 billion yen. It said it is considering introducing a domestic fuel surcharge in the financial year from April 2027.Asiana AirlinesThe South Korean airline will slash 22 flights between April and July due to the fuel cost increase, Newsis reported.Cebu AirThe Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.Delta Air LinesDelta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags in an attempt to offset soaring jet fuel costs, with an increase of US$10 on first and second checked bags and a US$50 increase on the third.The US airline pulled all planned capacity growth for the current quarter and forecast profit below Wall Street expectations.EasyJetEasyJet warned of a bigger half-year pre-tax loss of between £540 million and £560 million (S$933 million and S$968 million), including £25 million in extra fuel costs in March.Frontier AirlinesA group of US budget airlines including Frontier has pitched a US$2.5 billion relief plan to the US government, the Wall Street Journal reported. The figure is based on how much more the group expects to pay for jet fuel this year compared to earlier forecasts, the report said.The carrier has said it is reviewing its full-year forecast as fuel prices have increased significantly since it issued it.Greater Bay AirlinesThe Hong Kong-based company said it would raise fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes.Hong Kong AirlinesThe airline said it would raise fuel surcharges by up to 35 per cent from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 from HK$284.IAGBritish Airways-owner IAG said it would raise ticket prices to reflect higher jet fuel costs, as, despite its fuel hedges, it was “not immune” to the broader fallout from fuel cost volatility.IndigoIndia’s biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe.JetBlue AirwaysJetBlue said it would slow hiring, cut capacity and hike fares to soften the impact of soaring jet fuel costs, and its CEO Joanna Geraghty said on an earnings call the airline suspended its full-year outlook.Korean Air The South Korean carrier will enter emergency management mode from April, as rising oil prices weigh on costs, a source with knowledge of the matter told Reuters.LufthansaThe German airline group unveiled a new “Economy Basic” low-cost fare option for short- and medium-haul flights, which will limit free carry-on bags to only a “laptop bag or a small backpack”.The group previously said 20,000 short-haul flights would be removed from its schedule through October, equivalent to about 40,000 metric tons of jet fuel.Pakistan International AirlinesThe carrier said it would raise domestic flight fares by US$20 and international fares by up to US$100, citing higher fuel surcharges.Qantas AirwaysAustralia’s Qantas said it had delayed a planned A$150 million (S$138 million) buyback and was raising its estimated fuel bill for the second half of 2026 to A$3.1 billion-A$3.3 billion, from a previous A$2.5 billion forecast.SASThe Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices, after cancelling a “couple hundred” flights in March.Spirit AirlinesThe US low-cost carrier shut down abruptly after collapsing under financial pressures, including the sharp rise in fuel costs due to the Iran war.Spring AirlinesThe budget Chinese airline said it would raise fuel surcharges on domestic flights from April 5, with details to be announced later.Southwest AirlinesThe US carrier forecast second-quarter profit below market expectations and its CEO warned the jet fuel spike would be a billion-dollar headwind for the airline in the quarter.It had previously hiked checked baggage fees by US$10 for the first and second bags, raising costs to US$45 for the first bag and US$55 for the second.TapThe Portuguese airline said its price hikes would partially mitigate the impact of fuel price changes on its revenue.AirAsiaThe Thai low-cost carrier said it would reduce overall seat capacity by an average of 30 per cent between May and June to mitigate the impact of aviation fuel prices and softening demand.Thai AirwaysThe Thailand-based carrier said it would raise fares by 10 per cent to 15 per cent to address rising fuel costs.TUIThe European airline and tour operator cut its full-year underlying profit outlook and suspended revenue guidance, saying it had incurred about 40 million euros in extra costs due to the war in March, including repatriation efforts and operational disruptions.Turkish Airlines, LufthansaSunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros per passenger on routes between Turkey and mainland Europe. The surcharge will apply to bookings made on or after April 1 for departures on or after May 1.Turkish Airlines said on April 10 it had decided not to distribute any dividend from its 2025 net profit, opting to retain earnings to preserve cash.T’way AirThe South Korean low-cost carrier said it planned to furlough some of its cabin crew without pay in May and June as part of measures to address the impact of the war.United AirlinesThe US airline’s CEO Scott Kirby said ticket prices may need to rise by as much as 15 per cent to 20 per cent to offset a surge in jet fuel costs. The company already instated five fare increases late in the first quarter, along with higher baggage fees, which it said have started to offset rising fuel costs.The carrier also forecast second-quarter and full-year profits below Wall Street estimates and said it expected to recover only 40-50 per cent of the increase in fuel prices through fares and other revenue measures in the second quarter, improving to 70-80 per cent in the third and to as much as 85-100 per cent by the fourth.VietJetThe Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.Vietnam AirlinesThe carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam’s aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.Virgin AtlanticThe airline is adding fuel surcharges to fares but will still struggle to return to profitability this year, its CEO Corneel Koster told the Financial Times.Virgin AustraliaVirgin Australia said it expected an increase in jet fuel cost of around A$30 million-A$40 million for the second half of this fiscal year, and a 1 per cent reduction in capacity in the fourth quarter.VoloteaThe Spanish low-cost airline introduced a new pricing policy linking ticket prices to fuel costs, which could potentially add a post-purchase surcharge of up to 14 euros per passenger, per flight.WestjetThe Canadian airline has cut seat capacity for June, the Globe and Mail reported. The Canadian Press previously reported that the carrier would add a C$60 (S$56) fuel surcharge to some bookings and combine flights as costs soar. REUTERS<div>Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.</div></div></div>

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A surge in jet fuel prices, rising from US$85-$90 to US$150-$200 per barrel, has forced airlines to increase fares and revise financial outlooks. Major airlines like Air Canada, American Airlines, and Air France-KLM have suspended guidance or cut capacity due to volatility in fuel costs. Airlines are implementing surcharges, reducing flights, and adjusting profit forecasts to mitigate the impact. The situation is exacerbated by geopolitical tensions, particularly the US-Israeli conflict with Iran, affecting operational expenses significantly across the aviation industry.

Airlines tackle fuel cost surge with price hikes, outlook cuts