A growing number of airlines have begun raising fares or adding fuel surcharges as the conflict in the Middle East drives a sharp spike in jet fuel prices and disrupts already sensitive long-haul traffic flows.
The shift is significant because this is not simply a routine pricing reset: carriers are being hit simultaneously by higher fuel bills, tighter airspace, longer routings and renewed pressure on margins. IATA notes the conflict, which escalated on 28 February 2026, has exposed deep vulnerabilities in jet fuel security, noting that the Strait of Hormuz normally carries around 20 per cent of global jet fuel trade.
Jet fuel prices which had been sitting at roughly US$85 to US$90 a barrel before the latest escalation, surged to between US$150 and US$200 a barrel in recent days. That is a material cost shock for an industry where fuel is typically the second-largest expense after labour. In practical terms, airlines now face a familiar but uncomfortable choice to absorb the increase and weaken earnings, or pass of it on to passengers.
Among the clearest fare moves has been Air New Zealand, which said it had lifted fares across its network and could make further pricing, schedule and network changes if fuel remains elevated. The airline has raised one-way economy fares by NZ$10 on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul sectors. The carrier has also suspended its FY2026 guidance.
Qantas has also moved, confirming it would increase fares on international routes this week in response to the fuel surge. The Australian carrier said demand on its Europe network is running unusually high, with March flights more than 90 per cent full, as some travellers and airlines seek alternatives around disrupted Middle East routings.
In Europe, SAS said it had introduced a temporary price increase because the jump in jet fuel costs was too large and too sudden to absorb. Its comments are notable for their candour: the airline said it normally tries to manage cost swings internally, but this rise required a direct pricing response to maintain stable operations.
Elsewhere, some carriers are using the surcharge mechanism rather than base fare increases. Air India said it would begin a phased increase in fuel surcharges on domestic and international routes as aviation turbine fuel prices escalated. Hong Kong Airlines is lifting fuel surcharges by up to 35.2 per cent, while Cathay Pacific has so far focused more on network adjustment, adding flights to London and Zurich in March as airspace closures and capacity constraints push up fares on Asia-Europe sectors. Airlines are not all responding in the same way. Carriers with meaningful fuel hedging in place have been better positioned to avoid immediate fare action, at least in the near term.
The airline industry has entered a new pricing phase. The first airlines to move have been those with the least room to absorb the shock, or the most direct exposure to spot fuel prices. More may follow if oil and jet fuel remain volatile. Even if crude eases from its recent highs, the combination of disrupted airspace, stretched capacity and fragile fuel supply chains suggests that higher fares on some international markets may persist beyond the first spike.