Airlines Cancel Flights and Hike Fares Amid Jet Fuel Crisis

Jet fuel costs have skyrocketed amid a global shortage fueled by conflict in the Middle East, prompting airlines worldwide to cancel flights and increase fares. United Airlines and Lufthansa are the latest carriers forced to consider raising ticket prices by up to 20% and scrapping thousands of flights, respectively, as oil prices surge from approximately $85-90 per barrel to $150-200 per barrel in recent weeks.

Impact on Airlines

Fuel can account for up to a quarter of operating expenses, making this price spike a severe financial blow. The European Commission proposed measures under the 'AccelerateEU' package to optimize jet fuel distribution among EU countries and avoid shortages. Europe faces a challenging summer, as about 75% of its jet fuel supply comes from the Middle East, with the Strait of Hormuz route disrupted.

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Airline Responses (Alphabetical)

Aegean Airlines: Expects suspended Middle East flights and fuel price spikes to notably impact first-quarter results.
AirAsia X: Cut 10% of flights across the group, with a 20% fuel surcharge.
Air France-KLM: Plans to raise long-haul ticket prices by €50 ($58) per round trip; KLM will cancel 160 European flights in the coming month.
Air Canada: Trimming four of 38 daily flights to New York from June 1 to October 25, 2026.
Air India: Revising fuel surcharges to a distance-based grid for domestic flights; international surcharges insufficient.
Airline Operators of Nigeria: Temporarily suspended a planned shutdown after government intervention, pending a meeting on April 22.
Air New Zealand: Slashing flights through May and June, hiking fares, and suspending full-year earnings forecast.
Air Transat: Reducing planned capacity by 6% from May to October, with cuts to Europe and Caribbean routes; Cuba service suspended until October.
Akasa Air: Introducing fuel surcharges of ₹199-1,300 ($2-$14) on domestic and international flights.
Alaska Air: Increasing first checked bag fee by $5, second by $10, and third from $50 to $200; withdrew full-year profit forecast.
American Airlines: Hiked checked baggage fees by $10 for first and second bags, $150 for third; trimmed economy benefits; expects $400M increase in Q1 expenses.
Asiana Airlines: Slashing 22 flights between April and July due to fuel cost increases.
Cathay Pacific: Cutting about 2% of scheduled passenger flights from mid-May to end of June; HK Express cutting 6%; raising fuel surcharge by 34% from April 1.
Cebu Air: Reviewing pricing and network strategies to mitigate fuel price impact.
China Eastern Airlines: Raising fuel surcharges for domestic flights from April 5: ¥60 ($9) for flights ≤800km, ¥120 for >800km.
Delta Air Lines: Cutting capacity by 3.5 percentage points, raising checked bag fees by $10 (first and second) and $50 (third); pulled all planned capacity growth for Q2.
EasyJet: Warning of half-year pre-tax loss of £540-560M ($731-758M), including £25M extra fuel costs; CEO expects higher ticket prices by end of summer.
Frontier Airlines: Reviewing full-year forecast due to significant fuel price increases.
Greater Bay Airlines: Raising fuel surcharges on most routes from April 1; Hong Kong-Philippines surcharge more than doubling.
Hong Kong Airlines: Raising fuel surcharges by up to 35% from March 12; sharpest increase on Hong Kong-Maldives/Bangladesh/Nepal routes.
British Airways (IAG): No immediate price hikes due to fuel hedging.
IndiGo: Introducing fuel charges from March 14; ₹900 for Middle East, ₹2,300 for Europe; lobbying for fuel tax cuts.
JetBlue Airways: Increasing optional service fees, including baggage by $4 or $9; CEO confirms no bankruptcy this year; secured $500M debt financing.
Korean Air: Entering emergency management mode from April; implementing phased response measures and cost efficiency.
Lufthansa Group: Cancelling 20,000 flights over six months to save 40,000 metric tonnes of jet fuel; axing unprofitable short-haul flights; permanently removing 27 Lufthansa CityLine aircraft.
Nigerian Airlines: Industry body warned of suspension from April 20 unless fuel prices reduced; accused fuel association of artificial price hikes.
Norse Atlantic: Cancelled London Gatwick-Los Angeles route due to fuel price rise.
Pakistan International Airlines: Raising domestic fares by $20, international by up to $100.
Qantas Airways: Delayed A$150M buyback; raised fuel bill estimate for H2 2026 to A$3.1-3.3bn from A$2.5bn.
SAS: Cancelling 1,000 flights in April; already increased prices.
Spirit Airlines: Requested emergency funding from Trump administration to offset fuel costs and avoid liquidation.
Spring Airlines: Raising fuel surcharges on domestic flights from April 5.
Southwest Airlines: Forecast Q2 profit below estimates; hiked checked bag fees by $10 for first and second bags.
TAP: Price hikes partially mitigating fuel cost impact.
Thai Airways: Raising fares by 10-15% to address rising fuel costs.
TUI: Cut underlying operating profit forecast; suspended revenue guidance; shares down 25% in three months; 83% hedged for summer.
SunExpress: Imposing €10 fuel surcharge per passenger from May 1 on Turkey-Europe routes.
T’Way Air: Furloughing some cabin crew without pay in May and June.
United Airlines: CEO says ticket prices may need to rise 15-20%; instated five fare increases; forecast Q2 and full-year profits below estimates; cutting unprofitable flights; increasing bag fees by $10.
Vietjet: Adjusted flight frequency on selected routes due to potential fuel shortages.
Vietnam Airlines: Cancelling 23 flights per week on domestic routes from April; requested government remove environmental tax on jet fuel.
Virgin Atlantic: Adding fuel surcharges; struggling to return to profitability this year.
Virgin Australia: Expects A$30-40M increase in fuel cost for H2; 1% capacity reduction in Q4; adjusting fares.
Volotea: Introduced pricing policy linking tickets to fuel costs; potential post-purchase surcharge up to €14 per passenger.
WestJet: Cut seat capacity for June; adding C$60 ($43) fuel surcharge to some bookings; combining flights.