Global Airlines Cut Routes and Raise Fares Amid Conflict and Jet Fuel Crisis

Several global airlines are adjusting their operations by reducing flight frequencies and raising airfare prices. This follows a surge in jet fuel (avtur) prices triggered by the conflict between the United States (US), Israel, and Iran. The measures aim to mitigate the sharp increase in operational costs. Airlines such as Air India and Air New Zealand have announced flight reductions and fare adjustments. The rise in avtur prices is the primary factor, as fuel accounts for about 20 to 40 percent of total airline operating costs. Last week, the benchmark avtur price in Europe reached a record high of $1,838 (approximately Rp 29 million) per tonne, a drastic jump compared to before the conflict began, as reported by BBC on Wednesday (8/4/2026). Analysts warn that this situation could lead to continuously rising ticket prices and fewer flights, especially if the conflict continues. The Gulf region is the main source of aircraft fuel, supplying about 50 percent of Europe’s imports. Most of that supply passes through the Strait of Hormuz, which is currently affected by Iran’s closure in response to attacks by the US and Israel. Air New Zealand is expected to reduce flights to and from Auckland, Wellington, and Christchurch. The airline also stated that most affected passengers will be rerouted to other flights on the same day. “Like other global airlines, we are also experiencing more than double the usual jet fuel price increase,” said a spokesperson for Air New Zealand. Meanwhile, Air India has changed its domestic flight fuel surcharge scheme from a fixed rate to a distance-based one. The airline has also raised additional fees for international flights. Airlines in Asia are also starting to reduce services and adjust ticket prices. China Eastern Airlines has increased domestic flight surcharges, while Korean Air has entered emergency management mode. United Airlines and Scandinavian Airlines have also cut flights and raised fares. Meanwhile, Air France-KLM plans to increase long-haul ticket prices, and Cathay Pacific is raising fuel surcharges. However, some airlines, such as International Airlines Group and easyJet, are still able to hold off on increases because they “locked in” fuel prices before the conflict. Ryanair CEO Michael O’Leary even warned that avtur supplies could be disrupted starting in May 2026 if the conflict continues.