Qantas Airways announced fare increases on international routes this week, joining a growing list of global carriers responding to a surge in jet fuel prices triggered by the ongoing conflict involving the United States, Israel, and Iran. The price of jet fuel has more than doubled in recent days, climbing from a range of $85 to $90 per barrel to between $150 and $200, according to industry reports.
Air New Zealand was among the first airlines to react, announcing broad fare increases on Tuesday and suspending its fiscal 2026 earnings forecast due to the “unprecedented volatility” in global jet fuel markets. The airline detailed specific price hikes: NZ$10 (US$6) on domestic routes, NZ$20 on short-haul international services, and NZ$90 on long-haul flights. Air New Zealand cautioned that further adjustments to pricing, network configurations, and schedules are possible if fuel costs remain elevated.
Several other airlines have announced similar measures. Cathay Pacific Airways stated it added flights to London and Zurich in March to mitigate disruptions to established travel routes. The airline maintains monthly reviews of its fuel surcharges, holding them steady last month at US$72 for flights between Hong Kong and Europe or North America. Hong Kong Airlines will raise fuel surcharges by up to 35.2 percent starting Thursday, with the largest increases affecting flights to the Maldives, Bangladesh, and Nepal, reaching HK$384 (US$49) from HK$284.
Scandinavian airline SAS confirmed it has implemented a “temporary price adjustment” in response to the rising costs. Thai Airways announced a 10 to 15 percent fare increase to offset the impact of higher fuel prices. United Airlines CEO Scott Kirby indicated on March 6 that the carrier anticipates a “meaningful” negative impact on its first-quarter results due to the fuel price surge.
While British Airways’ parent company, IAG, stated it was not immediately planning fare increases, citing fuel hedging for the short to mid-term, other carriers are actively seeking relief. Vietnam Airlines has requested government assistance to remove an environmental tax on jet fuel, reporting that operating costs for Vietnamese airlines have increased by approximately 70 percent. Singapore Airlines and its budget subsidiary Scoot stated that their airfares are determined by supply and demand and do not currently include fuel surcharges.
Qantas reported increased demand for routes to Europe via Singapore, with flights exceeding 90 percent capacity – a 15 percent increase over normal levels for this time of year. Bookings for travel between April and June have similarly risen, as passengers opt to maintain European travel plans and utilize longer routes through the United States, Asian cities, and South Africa. Jetstar, Qantas’s budget airline, has also increased its airfares.
Virgin Australia, a predominantly domestic carrier, is currently assessing the long-term impacts of the sustained fuel price increases.
