Overview
- Jet fuel jumped from about $2.50 a gallon on Feb. 27 to a peak near $3.95 on Mar. 5 before easing to roughly $3.40 by Mar. 10, with IATA noting crack spreads have widened faster than crude.
- Air India is imposing surcharges up to $200 on long-haul flights starting Mar. 12 with another increase on Mar. 18, while Qantas lifted fares about 5%, Thai Airways raised 10%–15%, and Hong Kong Airlines added about $19 to bring long-haul surcharges near $94.
- Air New Zealand, Cathay Pacific, and AirAsia signaled higher prices or surcharges as carriers move quickest on premium cabins and long-haul routes where demand is less price-sensitive.
- Skift Research estimates roughly $24 billion in extra fuel costs this year, implying average fare increases of at least about 10% to offset the shock.
- U.S. airlines have not broadly raised ticket prices, though United’s Scott Kirby said increases would probably start quickly, and experts advise booking now or choosing refundable fares since new surcharges cannot be applied to existing bookings as Middle East hub disruptions tighten capacity.