Airlines cut flights and hike fares as fuel prices surge
Air India and Air New Zealand announced they will cut flights and hike fares as jet fuel prices surge due to the US-Israeli war with Iran. Air New Zealand's cancellations are expected to hit routes in and out of Auckland, Wellington and Christchurch, with flights to smaller airports unchanged. The airline said on Tuesday the "vast majority" of customers affected by the cancellations were being offered alternative flights on the same day. Air India said it would change the fuel surcharge on its domestic flights from a flat fee to one based on the flight distance.
Many airlines around the world have had to take emergency measures to counter the rising cost of fuel, which typically makes up 20-40% of their operating costs. Last week, the benchmark European jet fuel price hit an all-time high of $1,838 (£1,387) per tonne, compared with $831 before the war began. The Al-Zour refinery in Kuwait alone provides roughly 10% of Europe's jet fuel imports, according to Energy Intelligence. Major economies, including Japan and South Korea, have been particularly affected by the disruptions as they are heavily reliant on energy from the Middle East. Last week, China Eastern Airlines said it was raising surcharges for domestic flights while Korean Air said it was moving into emergency management mode. United Airlines in the US and Scandinavia's SAS are among those to have cut flights and increased ticket prices. Air France-KLM has said it will lift fares for long-haul journeys, while Cathay Pacific is raising its fuel surcharge.
Analysts warned that travellers should expect further ticket price rises and more cancelled flights as the conflict continues. Ryanair's Michael O'Leary told Sky News last week that jet fuel supplies could start to be disrupted in May if the conflict continued. Vortexa analyst Mick Strautmann said that "Given global jet
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Airlines like Air India and Air New Zealand are making changes as jet fuel prices surge due to the US-Israeli war with Iran. With rising operating costs, travelers should prepare for potential disruptions.
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