Global Jet Fuel Prices Surge 83% Due to War in Iran, Aviation Industry Faces Paralysis

The global aviation industry is facing its heaviest financial pressure this year after jet fuel (avtur) prices surged dramatically by 82.8% in just one month, Anadolu reported on Tuesday (17/3). The latest report from the International Air Transport Association (IATA) indicates that military escalation in the Middle East has triggered energy market volatility to levels endangering airline margins.

According to IATA’s Fuel Price Monitor data, the average avtur price has reached US$175 per barrel (approximately Rp28 million per barrel), up 11.2% in the past week. On an annual basis, the increase stands at a staggering 94.4%.

This spike follows the US-Israel airstrikes on Iran on 28 February, which killed around 1,300 people, including Supreme Leader Ali Khamenei. Brent crude oil prices rose to US$119.5 per barrel after the attack was launched, before stabilising around US$100.

IATA warns that sudden price increases are far more damaging than stable high prices. This is because airlines do not have enough time to adjust ticket fares, flight capacities, or fuel procurement strategies.

This cost pressure stems not only from Brent crude oil prices that briefly exceeded US$119.5 per barrel but also from additional operational costs due to flight route diversions and service suspensions in conflict zones, the report states.

Iran’s retaliatory attacks using drones and missiles on various regions in the Middle East have further worsened global market disruptions. With fuel as the largest component of operational costs, this crisis in Iran is predicted to force many airlines to implement major efficiencies or significantly raise passenger fares in the near term.