Fuel Prices Officially Rise, Airline Ticket Prices Worldwide Surge in Unison
Global airlines are beginning to increase fares and cut several routes, in line with the sharp surge in jet fuel prices due to the US-Israel conflict against Iran. This cost increase is placing immense pressure on the industry, with additional burdens reaching hundreds of millions of US dollars in a short time.
Delta Air Lines CEO Ed Bastian revealed that the fuel price surge has added costs to the airline of US$400 million, or approximately Rp6.4 trillion, in just March. He stated that the industry is quickly passing on these cost increases through higher fares.
In agreement with Delta, American Airlines estimates an additional cost of US$400 million in the first quarter of this year due to the fuel price spike.
In Europe, Scandinavia’s largest airline, SAS AB, was one of the first to take action by cutting several flights. The airline said the decision was due to the “sharp and sudden” rise in fuel prices.
“The entire European aviation system is now feeling the pressure from the sudden fuel price shock,” the company stated in an email, as quoted by Reuters on Wednesday (18/3/2026).
The conflict, now in its third week, has caused major disruptions in the global aviation industry. Many flights have been cancelled, rescheduled, or rerouted because parts of Middle Eastern airspace have been closed due to threats of missile and drone attacks.
As a result, jet fuel prices have skyrocketed, with increases of up to double in Europe and nearly 80% in Asia since the attacks began at the end of February.
Fuel is the second-largest cost component for airlines after labour, accounting for about 20% to 25% of total operating costs. Pressure is also coming from the supply side, after China and Thailand halted jet fuel exports, prompting Vietnamese authorities to warn of potential flight reductions starting in April.
The impact of this conflict extends to various global aviation hubs. Frankfurt Airport recorded around 86,000 passengers affected by flight cancellations in the first two weeks of the conflict, with only one-third of weekly connections to the Middle East still operating at present. This situation reflects the immense pressure now facing the global aviation industry.
Several airlines are beginning to adjust strategies to maintain performance. Air France-KLM has announced increases in long-haul ticket prices to offset the fuel cost surge.
While Delta remains positioned to recover the additional costs, including through capacity adjustments if prices stay high, Bastian warned that fare increases must be done carefully amid fragile consumer confidence.
Meanwhile, American Airlines estimates first-quarter revenue will grow by more than 10%, exceeding previous projections. Nevertheless, per-share losses are expected to remain at the lower end of prior guidance, reflecting ongoing high cost pressures.
This situation shows that the geopolitical conflict has triggered widespread ripple effects and once again placed the aviation industry under significant pressure after being hit by the Covid-19 pandemic.