Airlines cut flights and hike fares as fuel prices surge

Airlines cut flights and hike fares as fuel prices surge

Escalating fuel costs, driven by the ongoing US-Israeli conflict with Iran, have prompted Air India and Air New Zealand to reduce flight schedules and raise ticket prices. This trend is part of a broader global response to soaring aviation fuel prices, which account for 20-40% of airlines’ operational expenses.

Last week, the European jet fuel benchmark reached a record $1,838 (£1,387) per tonne, a sharp increase from $831 before the war began. The crisis highlights the critical role of Middle Eastern refineries in fuel supply, with the Strait of Hormuz—key for transporting 50% of Europe’s aviation fuel imports—now effectively blocked by Iran in retaliation against US and Israeli strikes.

Energy Intelligence notes that the Al-Zour refinery in Kuwait alone contributes about 10% of Europe’s jet fuel supply. Analysts warn that higher fares and cancellations will likely persist as the conflict drags on, exacerbating an already strained aviation market.

Air New Zealand anticipates disruptions on major routes between Auckland, Wellington, and Christchurch, though flights to smaller airports remain unaffected. The airline, which had already trimmed some services last month, offered replacement flights to most passengers impacted by the cancellations on Tuesday.

“Like airlines globally, we’re experiencing fuel prices that have more than doubled the usual rates,” said a spokesperson for Air