Budget airline Spirit Airlines is reportedly on the verge of collapse after failing to secure crucial financial backing from the government. Like many airlines, Spirit is grappling with intense pressure from soaring fuel costs, which have roughly doubled since the outbreak of the Iran war. Without a government bailout, these escalating expenses are rapidly depleting Spirit's remaining cash reserves.
The struggling carrier had been engaged in negotiations with the Trump administration for a $500 million rescue package. However, these efforts have stalled, as Spirit was unable to garner the necessary support from its bondholders and other government stakeholders, sources familiar with the situation informed the Wall Street Journal on Friday.
It follows United's CEO announcing that the airline may need to raise fares by as much as 20 per cent, while Lufthansa's airline group cancelled 20,000 flights in bids to protect their airlines from the soaring cost of oil.
So far the impact on British passengers has been limited. Airlines UK, representing the main carriers, says: "Airlines continue to operate normally and are not experiencing issues with jet fuel supply."
Britain has asked UK refineries to maximise jet fuel supply as it continues to plan for a range of contingencies to increase flexibility on supply, the government said. The European Commission proposed a series of measures to address the impact on the region's energy markets from the U.S.-Israeli war with Iran. The Commission said the measures - announced in a package called 'AccelerateEU' - included optimising the distribution of jet fuel between EU countries, in order to avoid shortages.
Aegean Airlines
The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a "notable impact" on its first-quarter results.
AirAsia X
The Malaysian airline's executives said the company had cut 10% of flights across the group, with a surcharge of about 20% on fuel in general.
Air France-KLM
The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros ($58) per round trip. The group's Dutch arm KLM cancelled more than 150 European flights due to the rising cost of jet fuel. The Dutch airline will not operate 80 return flights out of Amsterdam's Schiphol airport over the next month. The flights are "currently no longer financially viable to operate" due to rising kerosene costs, said KLM.
Air Canada
Canada's largest carrier plans to trim four of its 38 daily flights to New York due to higher fuel prices. The four flights to JFK International Airport will be cut from 1 June to 25 October 2026.
Air India
The Indian carrier said it would revise its fuel surcharge from a flat domestic surcharge to a distance-based grid. It said surcharges on international routes did not compensate for the exponential rise in fuel prices.
Airline Operators of Nigeria
Nigeria's government moved to cap jet fuel prices and allow airlines to purchase supplies on credit, in an effort to avert widespread flight disruptions caused by escalating fuel costs. A government document, seen by Reuters, indicates that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set price limits for aviation fuel. Nigerian airlines temporarily suspended a planned nationwide shutdown of flight operations, which was set to begin on April 20, after the government intervened amid crippling fuel prices. The Airline Operators of Nigeria (AON), an industry body representing a dozen primarily domestic carriers, had warned they would halt services from April 20, citing that surging jet fuel costs had rendered operations unsustainable.
Air New Zealand
The airline said on 7 April it would slash flights through May and June and hike fares, having been one of the first to announce broad increases to ticket prices when the conflict broke out. It also suspended its full-year earnings forecast due to fuel market volatility.
Air Transat
The Canadian airline said it would reduce planned capacity by 6% from May until October this year, with cuts expected on routes to Europe and the Caribbean and its service to Cuba remaining suspended until October.
Akasa Air
India's Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.
Alaska Air
The U.S. airline said it would increase fees for the first checked bag by $5 and by $10 for the second on its North American flights, as well as for its Hawaiian Airlines unit. It hiked prices for a third checked bag from $50 to $200. The carrier withdrew its full-year profit forecast as the sharp rise in jet fuel prices put pressure on margins.
American Airlines
The U.S. carrier said it would hike checked baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag on domestic and short-haul international flights. It also trimmed certain benefits for economy passengers. It had earlier said it expected a $400m increase in first-quarter expenses due to fuel prices.
Asiana Airlines
The South Korean airline will slash 22 flights between April and July due to the fuel cost increase, Newsis reported.
Cathay Pacific
The Hong Kong airline said it would cut some flights from mid-May until the end of June, cancelling about 2% of its scheduled passenger flights, while its budget airline HK Express was cutting around 6% of flights. The carrier previously said it would hike its fuel surcharge by 34% across routes from April 1 and review them every two weeks. The airline raised HK$2.08 billion ($265.58 million) from three-year fixed-rate notes at a yield of 3.78%, according to a term sheet seen by Reuters on Wednesday.
Cebu Air
The Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.
China Eastern Airlines
The airline said it would raise fuel surcharges for domestic flights from 5 April, with flights of 800km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800km.
Delta Air Lines
Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags in an attempt to offset soaring jet fuel costs, with an increase of $10 on first and second checked bags and a $50 increase on the third. The U.S. airline pulled all planned capacity growth for the current quarter and forecast profit below Wall Street expectations. Delta CEO said it would hold off on updating the full-year outlook given uncertainty over how long the fuel price spike would last.
EasyJet
EasyJet Holidays told customers they can be confident their holidays will "go ahead as planned" without extra surcharges. CEO Garry Wilson said on Saturday, 25 April: "We know that holidaymakers may have questions about what recent global events might mean for their travel plans this summer, so we are giving our customers absolute peace of mind that no surcharges will be added to their flights or package holidays." EasyJet had previously warned of a bigger half-year pre-tax loss of between £540m and £560m ($731m and $758m), including £25m in extra fuel costs in March. CEO Kenton Jarvis previously said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.
Frontier Airlines
The U.S. airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.
Greater Bay Airlines
The Hong Kong-based company said it would raise fuel surcharges on most routes from 1 April, while keeping them unchanged on mainland China and Japan routes. Its surcharge for flights between Hong Kong and the Philippines will more than double, the carrier said.
Hong Kong Airlines
The airline said it would raise fuel surcharges by up to 35% from 12 March, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284.
British Airways
IAG – which owns British Airways, Aer Lingus and Iberia of Spain – is talking of "pricing adjustments to reflect these higher fuel costs". A spokesperson said: "We are not seeing jet fuel supply interruptions, but fuel prices have risen sharply and, despite our hedging strategy, which gives some shorter-term mitigation, we are not immune to the impact." However, The Independent's Simon Calder has reassured customers "not to fret". "BA will not come after you for more cash, and the airlines can charge only what the market will bear. And judging from some of the prices on offer, that isn't a lot," he said.
IndiGo
India's biggest airline said it would introduce fuel charges on domestic and international flights from 14 March, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe. The company is also lobbying the Indian government to cut fuel taxes, sources told Reuters.
Jet2
Britain's biggest holiday company has vowed not to surcharge summer holidaymakers due to rising jet fuel costs. Speaking on Friday, chief executive Steve Heapy said: "Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2. Customers booking with Jet2 know that they are locking in their price without additional cost surprises later."
JetBlue Airways
The U.S.-based low-cost carrier said it was increasing fees for optional services such as checked baggage as it experiences "rising operating costs". Baggage prices will rise by either $4 or $9, it said. Joanna Geraghty, CEO of the U.S.-based low-cost carrier, told employees in a memo seen by Reuters that the carrier would not consider bankruptcy this year, even as rising jet fuel costs threaten its financial recovery. The company entered a $500 million debt financing agreement, according to an SEC filing.
Korean Air
The South Korean carrier will enter emergency management mode from April, as rising oil prices weigh on costs, a source with knowledge of the matter told Reuters. The airline plans to implement phased response measures based on oil price levels, and step up company-wide cost efficiency to offset surging fuel costs.
Lufthansa
Lufthansa Group announced on Tuesday 21 April that it will cancel 20,000 flights over the next six months to save 40,000 metric tonnes of jet fuel, which it said had doubled in price. It said it has axed "unprofitable" short-haul flights operated by its regional subsidiary Lufthansa CityLine, reducing the entire group's capacity by one per cent in available seat kilometres this summer. Lufthansa CityLine has hubs in Frankfurt and Munich. The first 120 daily flight cancellations took effect on Monday and will continue through the end of May. The airline said affected passengers have been notified. The group has also permanently removed the 27 Lufthansa CityLine aircraft from operation. Some routes have also been cancelled in their entirety, including from Frankfurt to Bydgoszcz and Rzeszów in Poland, as well as Stavanger in Norway, meaning they have been temporarily removed from the flight schedule.
Norse Atlantic
Low-cost Norwegian airline Norse Atlantic has cancelled its flight route between London Gatwick and Los Angeles due to the rise in fuel prices.
Pakistan International Airlines
The carrier said it would raise domestic flight fares by $20 and international fares by up to $100, citing higher fuel surcharges.
Qantas Airways
Australia's Qantas said it had delayed a planned A$150m ($106m) buyback and was raising its estimated fuel bill for the second half of 2026 to A$3.1bn-A$3.3bn, from a previous A$2.5bn forecast.
Ryanair
Ryanair's chief executive, Michael O'Leary, has warned that several European airlines could face significant financial difficulties and potential failures if jet fuel prices remain high throughout the summer season. Despite the volatile market, O'Leary affirmed that Ryanair is 'the best insulated, most hedged airline in Europe' and committed to not imposing price increases or fuel surcharges on its customers.
SAS
The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices, after cancelling a "couple hundred" flights in March. SAS, which had already increased flight prices, said that even if it tried to absorb the rising fuel costs, the price surge would still be a blow to the aviation industry.
Spirit Airlines
Spirit Airlines is reportedly preparing to shut down after efforts to save the struggling budget carrier fell apart. The Wall Street Journal reported Friday that the airline was hoping a $500 million lifeline from the government would come through before it ran out of cash but it hasn't been able to secure the funding to keep it in business. The carrier announced Thursday that a bankruptcy court hearing would not proceed as the airline continued negotiations with lenders regarding the potential U.S. government rescue package. Lenders had refrained from filing a notice that could initiate the liquidation of Spirit's assets within seven business days, indicating ongoing discussions and a temporary halt to immediate liquidation proceedings. Spirit's legal counsel highlighted a critical need for immediate new financing or access to $240 million of its existing funds, warning that liquidation would result in the loss of over 17,000 jobs and billions of dollars in claims.
Spring Airlines
The budget Chinese airline said it would raise fuel surcharges on domestic flights from 5 April, with details to be announced later.
Southwest Airlines
The American carrier forecast second-quarter profit below estimates as margins were dented by high fuel prices. It previously said it would hike checked baggage fees by $10 for the first and second bags, raising costs to $45 for the first bag and $55 for the second.
TAP
The Portuguese airline said its price hikes would partially mitigate the impact of fuel price changes on its revenue.
Thai Airways
The Thailand-based carrier said it would raise fares by 10% to 15% to address rising fuel costs.
TUI
Europe's largest tour operator TUI has reassured customers who have already booked their holidays that the price is fixed "with no fuel surcharges added." Neil Swanson, managing director of TUI UK & Ireland, said: "We understand that customers want both confidence and clarity when booking a holiday. Our teams are here to support people who are thinking about booking, and those who have already booked with Tui can be reassured that their holiday price is fixed, with no fuel surcharges added." TUI had previously cut its underlying operating profit forecast and suspended its revenue guidance, citing uncertainty caused by the Iran war, prompting its shares to fall by 2.6%.
SunExpress
SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros per passenger from 1 May on routes between Turkey and Europe. The surcharge will apply to bookings made on or after 1 April for departures on or after 1 May. Turkish Airlines said on April 10 it had decided not to distribute any dividend from its 2025 net profit, opting to retain earnings to preserve cash.
T'Way Air
The South Korean low-cost carrier said it planned to furlough some of its cabin crew without pay in May and June as part of measures to address the impact of the war.
United Airlines
The U.S. airline's CEO Scott Kirby said ticket prices may need to rise by as much as 15 to 20 per cent to offset a surge in jet fuel costs. The company already instated five fare increases late in the first quarter, along with higher baggage fees, which it said have started to offset rising fuel costs. The carrier also forecast second-quarter and full-year profits below Wall Street estimates and said it expected to recover only 40-50% of the increase in fuel prices through fares and other revenue measures in the second quarter, improving to 70-80% in the third and to as much as 85-100% by the fourth. The U.S. airline previously said it would cut unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said. It is also increasing first and second checked bag fees by $10 for customers travelling in the U.S., Mexico and Canada and Latin America, it said in an e-mailed statement to Reuters.
Vietjet
The Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.
Vietnam Airlines
The carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam's aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.
Virgin Atlantic
The airline is adding fuel surcharges to fares but will still struggle to return to profitability this year, its CEO Corneel Koster told the Financial Times.
Virgin Australia
Virgin Australia said it expected an increase in jet fuel cost of around A$30m-A$40m for the second half of this fiscal year, and a 1% reduction in capacity in the fourth quarter. The airline previously said it was adjusting fares to reflect rising cost pressures.
Volotea
The Spanish low-cost airline introduced a new pricing policy linking ticket prices to fuel costs, which could potentially add a post-purchase surcharge of up to 14 euros ($16.50) per passenger, per flight.
WestJet
The Canadian airline has cut seat capacity for June as costs soar, the Globe and Mail reported. The carrier will add a C$60 ($43) fuel surcharge to some bookings and combine flights as costs soar, the Canadian Press previously reported.
