Thai Lion Air Cuts Routes as Jet Fuel Costs Surge
Thai Lion Air Cuts Routes as Jet Fuel Costs Surge

Thai Lion Air is reducing operations on more than 15 routes between June and September due to soaring jet fuel costs, driven by the ongoing conflict in the Middle East. The cuts affect popular tourist destinations including China, Japan, India, Indonesia, Singapore and Nepal.

The Phuket-Singapore route, a key tourist link, will be suspended entirely from 3 June to 1 August, with services resuming at just two flights per week in August, down from four previously. The airline cited the impact of tensions in the Middle East on the aviation industry as the main reason for the adjustments.

Fuel prices have surged since the start of the US-Israeli war on Iran and the closure of the Strait of Hormuz. Jet A-1 aviation fuel has more than doubled from pre-conflict levels, rising from around $80 per barrel to over $240 per barrel in some cases. Fuel typically accounts for about 30 per cent of a flight’s operating costs, forcing airlines to reduce frequencies and suspend routes, particularly medium- and long-haul services.

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Europe’s aviation industry has warned that a prolonged Iran war could disrupt supply chains, raise costs, and slow aircraft production. Dutch airline KLM has announced it will not resume flights to various Middle Eastern destinations before mid-July, with services to Dubai suspended until at least 2 August and flights to Riyadh and Dammam grounded until at least 12 July.

In India, major airlines including Air India, IndiGo and SpiceJet have asked state-run oil companies to delay a planned increase in domestic jet fuel prices, as the war has sharply increased aviation costs. State-owned firms such as Indian Oil Corp. were reportedly considering raising domestic ATF prices by up to 25 per cent from June.

Passengers travelling with Thai Lion Air have been advised to monitor their bookings and check directly with the airline, as schedules may change further depending on fuel prices and travel demand.

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