London / Islamabad – Web Desk: Global airlines are grappling with skyrocketing jet fuel prices amid the US-Israeli war in Iran, forcing carriers to raise fares and reduce some routes, officials and analysts said on Tuesday.
Delta Air Lines CEO Ed Bastian revealed that fuel costs have surged Delta’s expenses by $400 million in March alone, prompting airlines to pass the burden onto passengers. American Airlines similarly expects a $400 million rise in first-quarter expenses due to soaring fuel prices.
Scandinavia’s largest carrier, SAS AB, announced limited flight cancellations, citing the “sharp and sudden increase” in fuel costs. The European aviation sector is particularly hard-hit, with jet fuel prices doubling in Europe and rising almost 80% in Asia since the start of US and Israeli strikes on Iran in late February.
Airspace closures and security threats have further disrupted operations. The United Arab Emirates briefly closed its airspace following missile and drone threats, and Frankfurt Airport reported 86,000 passengers affected in the first two weeks of the conflict, with only one-third of weekly connections to the Middle East operating.
Fuel accounts for roughly 20–25% of airline operating costs, second only to labor, and most carriers in the US have stopped hedging fuel costs over the past two decades, amplifying financial exposure.
Airlines are cautiously adjusting fares to maintain revenue while balancing fragile consumer confidence. Air France-KLM recently announced long-haul ticket price hikes, while some carriers have implemented fuel surcharges. Despite these challenges, American Airlines expects first-quarter revenue growth of more than 10%, above previous forecasts.
Experts warn the Middle East conflict could continue to ripple through global aviation, creating one of the industry’s biggest crises since the COVID-19 pandemic.
