A sharp escalation in geopolitical tensions—specifically US-Israeli strikes on Iran—has led to major disruption in the Strait of Hormuz, a critical route for global oil supply. Since late February, this has triggered a dramatic spike in jet fuel prices, rising from roughly $85–$90 per barrel to as high as $150–$200.

Fuel typically makes up about one-third of an airline’s operating costs, so this surge has forced airlines into difficult decisions: raise prices, cut flights, or both.

The situation is particularly worrying in Europe. With around 75% of its jet fuel supply passing through the affected region, experts warn reserves could run dangerously low within weeks. Some analysts fear that what are currently manageable disruptions could escalate into widespread travel issues by peak summer.

How Airlines Are Responding

Airlines across the globe have started taking action. Here’s a breakdown of what’s changing:

Europe & Nearby Regions

Aegean Airlines has warned that suspended Middle East routes and rising fuel costs will significantly impact its financial results.

Air France-KLM is adding €50 to long-haul tickets, while KLM is cancelling 160 European flights due to high operating costs.

Lufthansa is making one of the biggest cuts yet—20,000 flights cancelled through October and the closure of its CityLine subsidiary.

EasyJet expects heavy losses and warns that ticket prices could rise later in the summer.

SAS has already cancelled around 1,000 flights in April.

TAP Air Portugal says fare increases will only partly offset rising fuel costs.

Volotea has introduced a pricing system that may add surcharges even after booking.

Asia-Pacific

AirAsia X has reduced flights by 10% and added a 20% fuel surcharge.

Air New Zealand is cutting routes and increasing fares while withdrawing financial forecasts.

Cathay Pacific is cancelling flights and increasing fuel surcharges by over 30%.

Korean Air has entered emergency cost-control mode as fuel expenses double.

Thai Airways is raising ticket prices by up to 15%.

Vietnam Airlines is reducing domestic flights and seeking tax relief on fuel.

North America

American Airlines and Delta Air Lines have both increased baggage fees and cut capacity.

United Airlines is scaling back less profitable routes while anticipating high fuel prices for years.

Alaska Air and Southwest Airlines have raised checked baggage fees.

JetBlue Airways is increasing optional fees and securing emergency financing.

Other Global Updates

Air India and IndiGo have introduced new fuel surcharge systems.

Qantas Airways has raised fuel cost forecasts and delayed shareholder payouts.

TUI has cut profit expectations despite partial fuel hedging.

WestJet is adding surcharges and reducing seat capacity.

Virgin Atlantic expects difficulty turning a profit despite adding fuel surcharges.

Spirit Airlines has reportedly sought emergency funding to stay afloat.