Daijiworld Media Network - New Delhi
New Delhi, Apr 11: A sharp rise in global jet fuel prices, driven by escalating tensions involving the United States, Israel and Iran, is beginning to impact the aviation sector worldwide, with airlines hiking fares and cutting costs to manage the pressure.
Aviation turbine fuel prices have surged from around $85–90 per barrel to nearly $150–200 in recent weeks. With fuel accounting for nearly 25 per cent of airline operating costs, carriers are adjusting pricing and operations to remain financially stable.
Major airlines including Air India, IndiGo and United Airlines have already raised ticket prices. Several carriers have introduced fuel surcharges, increased baggage fees and revised service charges, while also reviewing expansion plans and focusing on cost control.
Among key measures, Air India has implemented a distance-based fuel surcharge, ranging from Rs 299 for short routes up to Rs 899 for flights beyond 2,000 km, effective April 8 for domestic and April 10 for international travel. IndiGo has added surcharges of up to Rs 950 on domestic flights and up to Rs 10,000 on long-haul international routes.
Globally, airlines are taking similar steps. Air Asia has cut nearly 10 per cent of its flights and imposed a fuel surcharge of around 20 per cent. Air France-KLM plans to increase long-haul fares by up to 50 euros per round trip, while Air New Zealand has reduced flights for May and June and suspended its financial outlook due to uncertainty.
Other carriers such as Akasa Air, Alaska Airlines, American Airlines and Delta Air Lines have increased baggage fees, trimmed capacity or deferred investments. Pakistan International Airlines has raised both domestic and international fares, while Turkish Airlines and Lufthansa’s SunExpress joint venture will introduce a temporary surcharge from May.
Industry experts warn that sustained high fuel prices could continue to strain airline profitability, with some carriers already adjusting long-term strategies in anticipation of elevated oil prices over the next few years.