Airlines in the Indo-Pacific region are raising fares and fuel surcharges as the war with Iran sends fuel prices soaring and sparks fears of jet fuel shortages if the conflict escalates.
Demand for alternative routes to Europe via the Middle East is also increasing, driving up ticket prices. More than 43,000 scheduled flights to and from the Middle East were canceled between February 28 and March 10, according to data from analytics firm Cirium.
Here is a list of airlines that have announced increases in fares and fuel charges:
Qantas
Australia’s biggest carrier is raising fares on international routes by about 5 per cent on average. The price of jet fuel has risen by as much as 150 per cent in the past two weeks, causing significant costs to the business, Qantas said. Flights on European routes, including Perth-London, Perth-Paris and services via Singapore, are more than 90 per cent full this month, up from a normal load level of 75 per cent at this time of year.
Air Asia
Southeast Asia’s biggest budget carrier has raised fares and revised fuel surcharges, but without specifying by how much. The airline said it would “vigilantly monitor market conditions and respond proactively as necessary”.
Air New Zealand
The airline said on March 10 it would raise fares by an unspecified amount, and may need to take further pricing measures and adjust its network and schedule if fuel costs remain high. The company also suspended its earnings guidance, saying the assumption on fuel costs announced at the end of last month was no longer valid.
Air India
Air India and Air India Express will increase fuel costs on domestic and international routes.
From March 12 a surcharge of 399 rupees ($4.35) will be added to flights and domestic services to South Asia, West Asia and the Middle East. Surcharges for Southeast Asia will rise to $US60 ($84) from $US40, and for Africa to $90 from $US60. Starting March 18, the surcharge for Europe will rise $25 to $125, and for North America and Australia $50 to $200. Additional fees for Hong Kong, Japan and South Korea will be announced later.
Hong Kong Airlines
Hong Kong Airlines increased fuel costs, effective March 12, on various routes, including a 35 percent increase – or HK$100 ($12.80) – to the Maldives, Nepal and Bangladesh. Tolls for long-distance destinations including Australia and North America will rise by HK$150 to HK$739.
Japan Airlines
JAL, which already charges a fuel surcharge on international routes, said it has no plans to introduce a tariff change before April 1.
Bloomberg
