A growing number of airlines have scrapped services and implemented fresh charges as a worsening jet fuel crisis sends ripples across the worldwide aviation sector. Costs have climbed sharply in recent weeks, rising from approximately $85-$90 per barrel to heights of $150-$200, fuelled by mounting tensions in the US-Israeli conflict with Iran. The steep increase in expenses has led carriers to raise ticket prices, axe routes and reconsider their financial projections.
Impact on Summer Holidays
The surge has prompted warnings of significant disruption, with International Energy chief Fatih Birol alerting that Europe could possess as little as six weeks of jet fuel reserves left if the Strait of Hormuz remains blocked. More than 30 airlines worldwide report they have been forced to scrap flights or impose additional charges.
Thankfully, many UK-based airlines 'hedge' fuel and also keep bulk quantities in reserve to minimise the impacts of any crises and keep their flight schedule going. See below for a full list of international airlines that have made changes as a result of the crisis so far.
Airlines Impacted by Jet Fuel Crisis
- AirAsia X - Slashed approximately 10 per cent of services and implemented a fuel surcharge of roughly 20 per cent.
- Air France-KLM - Increasing long-haul ticket prices, plus cabin fares by 50 euros per return journey, while also cancelling services. KLM, the group's Dutch division, is scheduled to eliminate 160 European flights in the forthcoming months.
- Air India - Moving to distance-based fuel surcharges, cautioning current pricing fails to cover escalating expenses.
- Air New Zealand - Cutting services through May and June, raising fares and suspending its full-year earnings guidance.
- Akasa Air - Introducing fuel surcharges ranging between 199 and 1,300 Indian rupees ($2 to $14) on both domestic and international journeys.
- Alaska Air - Increasing checked baggage fees by up to $150 on North American routes, as well as for its Hawaiian Airlines unit.
- American Airlines - Raising baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag, while cutting some economy benefits.
- Asiana Airlines - Cutting 22 flights between April and July due to fuel costs.
- Cathay Pacific - Cancelling a small portion of flights from mid-May until the end of June and increasing fuel surcharges.
- China Eastern Airlines - Raising fuel surcharges for domestic flights from April 5, with flights of 800km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800km.
- Delta Airlines - Cutting capacity by around 3.5 percentage points from its original plan and raising fees for checked bags.
- Easyjet - CEO Kenton Jarvis previously said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.
- Greater Bay Airlines - Raising fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes. Its surcharge for flights between Hong Kong and the Philippines will more than double.
- Hong Kong Airlines - Raising fuel surcharges by up to 35 per cent from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal.
- Indigo - Introducing fuel charges on domestic and international flights from March 14.
- JetBlue Airways - Increasing fees for optional services such as checked baggage due to rising operating costs. Baggage prices will rise by either $4 or $9.
- Lufthansa - Grounding 27 planes early and cutting more aircraft from its fleet.
- Norse Atlantic Airways - Axed its London Gatwick to Los Angeles route because of fuel costs.
- Pakistan International Airlines - Raising domestic fares by $20 and international fares by up to $100.
- SAS - Cancelling 1,000 flights in April after already hiking fares.
- Spring Airlines - Raising domestic fuel surcharges from April 5.
- Southwest Airlines - Hiking baggage fees to $45 for a first bag and $55 for a second.
- SunExpress - Adding a temporary 10-euro fuel surcharge on Turkey-Europe routes.
- TAP Air Portugal - Fare rises will soften the blow from higher fuel prices.
- Thai Airways - Increasing fares by up to 15 per cent.
- United Airlines - Scaling back loss-making routes over the next six months. It has also pushed up fares without seeing a major impact on bookings. United is also raising first and second checked baggage charges by $10 for passengers flying within the US, Mexico, Canada and Latin America.
- VietJet Air - Cut flights on some routes because of fuel shortages.
- Vietnam Airlines - Plans to cancel 23 domestic flights a week from April. The airline reportedly requested government assistance to remove an environmental tax on jet fuel.
- Virgin Atlantic - Adding fuel surcharges to fares and will still struggle to return to profitability this year.
- Volotea - Introduced a pricing policy that could add fuel surcharges of up to 14 euros per passenger.
- WestJet - Cutting seats, combining flights and adding a C$60 fuel surcharge on some bookings.
