Airlines raise fares as Iran conflict sends jet fuel prices soaring
India Today
The Iran-US conflict has disrupted shipping through a key global oil export route, pushing oil prices higher. As a result, airline tickets on some routes have become much more expensive, and there are growing concerns that travel demand could weaken if the situation continues.
Airlines in different parts of the world have started increasing ticket prices after fuel costs surged following the conflict involving Iran. Several carriers say the sudden jump in jet fuel prices has made it necessary to raise fares to manage rising operating costs.
Australia’s Qantas Airways, Scandinavian airline SAS and Air New Zealand announced fare increases on Tuesday, linking the move to the sharp rise in fuel prices caused by the Middle East conflict, reported Reuters.
Jet fuel prices, which were earlier around $85 to $90 per barrel before the US-Israeli strikes on Iran, have recently climbed to between $150 and $200 per barrel. Air New Zealand said the situation has created so much uncertainty that it has also suspended its financial outlook for 2026.
The conflict has disrupted shipping through a key global oil export route, pushing oil prices higher. As a result, airline tickets on some routes have become much more expensive, and there are growing concerns that travel demand could weaken if the situation continues.
Airlines say they have little choice but to react to the sudden rise in costs. SAS said it had introduced a temporary adjustment in ticket prices to maintain stable operations.
A spokesperson for the airline said increases of this scale required action to ensure reliable services. The company also said that it had previously modified its fuel hedging policy because of uncertain market conditions and currently has no fuel consumption hedged for the next 12 months.
Sensex has declined over 6,000 points or roughly 7.5% in a little over two weeks as global tensions and rising oil prices triggered selling in equities.
Speaking in Parliament, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said India has adequate fuel stocks, and there is no cause for concern over availability.
Industry sources told India Today TV that airline operators are now paying additional insurance charges for every aircraft flying into the Middle East, significantly increasing the cost of operations on these routes.
Under law, a domestic household is generally allowed to keep two LPG cylinders of 14.2 kg each at a time. This usually includes one cylinder connected for use and another spare cylinder kept as backup.
Early signals from GIFT Nifty suggest that the benchmark indices could open lower when trading begins. GIFT Nifty futures were trading at 23,784.50 at around 7:58 am. This indicates that the Nifty 50 may open below Wednesday's closing level of 23,866.85.
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The move comes as global energy markets remain on edge due to escalating tensions linked to the conflict involving Iran, which has raised fears of disruptions to crude oil shipments from the Middle East.
India consumes roughly 5.3 to 5.5 million barrels of crude oil every day. However, domestic production is only about 0.6 million barrels per day. This means the country depends on imports for nearly 85% of its oil needs.
At around 10:47 am, the BSE Sensex was down 750.68 points or 0.96% at 77,455.30, while the Nifty 50 slipped 208.25 points or 0.86% to 24,053.35.
Air India said the fuel surcharge is due to the sharp rise in aviation turbine fuel (ATF) prices since early March 2026, triggered by supply disruptions in the Gulf region.
Rahul Bhatia expressed gratitude to employees who worked tirelessly to restore operations during that challenging period, praising their resilience and dedication.
The Iran-US conflict has disrupted shipping through a key global oil export route, pushing oil prices higher. As a result, airline tickets on some routes have become much more expensive, and there are growing concerns that travel demand could weaken if the situation continues.