Qantas Airways and Air New Zealand have announced fare increases after jet fuel prices nearly doubled in the wake of the Middle East conflict, adding to mounting pressure on the global aviation industry.
Jet fuel, which traded at around $85 to $90 per barrel before the conflict began, has risen to between $150 and $200 per barrel in recent days.
Air New Zealand has suspended its 2026 financial forecasts, citing uncertainty caused by the conflict, while Qantas is exploring capacity reallocation on its European routes as drone and missile attacks restrict access to Middle Eastern airspace.
Qantas said its Europe-bound flights are running at above 90 per cent occupancy in March, compared with a typical load factor of around 75 per cent for this time of year.
Hong Kong’s Cathay Pacific Airways and Hong Kong Airlines have also introduced fuel surcharge increases, while Vietnam Airlines has called for the removal of an environmental fuel tax to help sustain its operations.
The disruption carries significant implications for global travel. Emirates, Qatar Airways and Etihad together carry roughly one-third of passengers travelling between Europe and Asia, and more than half of those flying from Europe to Australia, New Zealand and nearby Pacific island destinations.
South Korea’s HanaTour Service has cancelled group tour packages involving flights to the Middle East, while Thailand’s Ministry of Tourism has warned of major losses in visitor numbers and revenue if the conflict is prolonged.
(information from CNA)