Indian airlines increase international flight fares by 15%:Jet fuel prices double due to rising crude oil rates amid Iran War

The escalating tension in the Middle East is now directly affecting the common man’s pocket. Indian airlines have increased international flight fares by about 15%. Bloomberg shared this information in a report. According to the report, due to the growing conflict between America-Israel and Iran and the impact on the Hormuz route, crude oil prices and jet fuel prices continue to rise. The effect is now becoming visible on the global aviation industry. Major airlines across Asia and worldwide, including India, have also increased ticket prices and many companies are planning to ground their aircraft. Experts say this could be the biggest oil crisis since the 1970s. Indian Airlines may increase fares further According to the report, considering the increase in jet fuel (ATF) prices, Indian aviation companies may increase fares even further in the coming days. Airlines say that due to rising operational costs, they have no option but to increase fares. Jet fuel prices have almost doubled Since the Iran-Israel war started on February 28 and the Hormuz route was affected, the oil supply chain has been severely impacted. Due to this, crude oil prices are continuously rising. Brent crude oil price has reached $93 per barrel today. While just a day before, Brent crude oil price had reached around $120 per barrel. Meanwhile, jet fuel prices in many markets have doubled since the conflict began. Before the war, jet fuel prices were around $85 to $90 per barrel, which have now increased to between $150 to $200 per barrel. Also, due to tensions in the Middle East, more than 40,000 flights have been cancelled worldwide so far. Jet-fuel is the biggest expense for airlines Due to rising jet fuel prices, airlines worldwide have not only increased ticket prices but have also withdrawn their future financial outlooks. Jet-fuel is the biggest expense for airlines. It accounts for 30% to 40% of total operating costs. This sudden change in oil prices has disrupted airlines’ budgets. Major companies like Air New Zealand and Qantas have also made it clear that they will pass on the increased costs to passengers. Tickets may become up to 70% more expensive in Vietnam Bloomberg reported that the situation in Vietnam is quite serious. The state-owned Vietnam Airlines has stated that their operating costs have increased by about 70% due to rising fuel prices. For this reason, the airline may increase fares by the same amount. The airline has appealed to the government to remove the environmental tax on jet fuel, so that the company can get some relief and continue flights. The main reason for increased operating costs is Vietnam’s dependence on imported jet fuel. These airlines worldwide have also increased fares Air New Zealand: Air New Zealand announced a major increase in ticket prices on Tuesday. The company has increased one-way fares for domestic flights by 10 New Zealand dollars. For short-haul international flights, prices have been increased by 20 dollars and for long-haul flights by 90 dollars. The company has also withdrawn its earnings forecast for 2026 due to high market volatility. Hong Kong Airlines: Hong Kong Airlines is going to increase fuel surcharge by up to 35.2% from Thursday. The surcharge for countries like Maldives, Bangladesh and Nepal has been increased from 284 Hong Kong dollars to 384 Hong Kong dollars. Meanwhile, Cathay Pacific has started extra flights to London and Zurich in March to provide options to passengers on affected routes. The company is currently reviewing fuel surcharge every month. Qantas and SAS: Australia’s flag carrier Qantas Airways has increased fares on its international routes. However, the company says that flights to Europe are running over 90% full, so they are considering increasing capacity in the coming months. Nordic region’s major airline SAS (Scandinavian Airlines) has also implemented temporary price adjustments due to rising costs.
There is a state of panic everywhere in the aviation sector Sparta Commodities’ senior oil market analyst June Goh said there is panic everywhere in the aviation sector. Asian airlines with weak hedging programs are in the most trouble. They had sold tickets at low prices, but now they have to buy fuel at very expensive rates. Some low-cost airlines are now preparing to ground their aircraft. Because flying at current fuel prices is proving to be a loss-making deal. If conditions don’t improve, small airlines may shut down Analysts at German bank Deutsche Bank say that if conditions don’t improve soon, thousands of aircraft worldwide could be grounded and some small airlines might even shut down. Companies like Lufthansa could benefit While most airlines are in crisis, companies like Lufthansa are seeing this as an opportunity. Lufthansa CEO Carsten Spohr said that their company has hedged fuel prices, which will give them a ‘relative advantage’. They are planning to increase their capacity on routes to Asia and Africa by taking advantage of the impact on Middle East airlines.