Airlines Raising Fares Amid US-Israel-Iran Conflict Impact
Escalation of armed conflict between Israel and Iran is now having a direct impact on travellers’ budgets worldwide.
Major airlines across Asia and Europe have begun announcing ticket price increases and the introduction of fuel surcharges in response to soaring crude oil prices and ballooning operational costs.
According to Sundayguardianlive, as of Thursday 12 March 2026, Middle East tensions have caused jet fuel prices to skyrocket. Whilst prices typically range from $85–$90 per barrel (approximately Rp 1,444,539–Rp 1,529,511), they have now surged to $150–$200 per barrel (approximately Rp 2,549,186–Rp 3,398,915).
Beyond price factors, closure of most airspace over the Middle East has forced airlines to take longer detour routes, which automatically consume significantly more fuel.
Below is a list of airlines that have confirmed price increases or fare adjustments due to the conflict:
Qantas management has stated that the rise in jet fuel prices triggered by the US-Israel-Iran conflict has had a significant impact on their operational expenditure. Despite rising prices, Qantas has noted that demand remains strong, with seat occupancy to Europe exceeding 90 per cent.
Following Qantas’s lead, Air New Zealand has also raised ticket prices. Beyond price increases, the airline has announced the cancellation of thousands of flights from mid-March through May due to logistical constraints and costs that are no longer economically viable given the geopolitical situation. The carrier has hedged only approximately 30 per cent of its fuel costs, leaving it highly exposed to current market price fluctuations.
AirAsia, Asia’s largest low-cost airline group, has announced temporary ticket price increases and fuel surcharges.
The airline has stated it will continue to adjust fares based on developments in the highly volatile global energy market.
In Europe, major airline groups including Lufthansa Group, Ryanair, Air France-KLM, and International Airlines Group (IAG) are also experiencing significant pressure.