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Tue, 07 Apr 2026

Tue, 07 Apr 2026 Airlines cut flights and hike fares as fuel prices surge

Airlines have reduced services and lifted ticket costs as the Iran war weighs on jet fuel costs.

* Air India and Air New Zealand have announced plans to cut flights and increase ticket prices due to soaring jet fuel costs caused by the US-Israeli war with Iran.
* The conflict has led to disruptions in Middle Eastern refineries, which supply 50% of Europe's aviation fuel imports through the Strait of Hormuz.
* Jet fuel prices have reached an all-time high of $1,838 per tonne, up from $831 before the war began.
* Airlines worldwide are taking emergency measures to cope with the rising costs, including cancellations and fare hikes.
* Air New Zealand is canceling flights on routes in and out of Auckland, Wellington, and Christchurch, while offering alternative flights for affected customers.
* Air India will change its fuel surcharge policy from a flat fee to a distance-based charge for domestic flights and increase surcharges for international flights.
* Many Asian airlines have been trimming services and raising fares, including China Eastern Airlines and Korean Air.
* Major economies such as Japan and South Korea are being affected by the disruptions due to their reliance on Middle Eastern energy supplies.
* Analysts warn that rising ticket prices and flight cancellations will continue unless a resolution is reached in the conflict.
* Jet fuel exports are at their lowest point in four years, making it difficult for airlines to maintain current levels of air travel demand.