Overview
- Jet fuel has roughly doubled since late February to about $175 a barrel, according to IATA, pushing up airline operating costs.
- Virgin Australia will raise domestic base fares by about 5% from Monday, while Qantas reviews international prices fortnightly and several Asian carriers have added fuel surcharges.
- Air New Zealand is cutting roughly 5% of flights, or about 1,100 services, as carriers elsewhere trim schedules or cancel routes linked to disrupted Middle East corridors.
- Gulf hub operations remain constrained, with Emirates running just over half of Dubai flights and rerouted Europe‑Asia services adding up to 90 minutes, while some European airlines suspend Dubai and Abu Dhabi services.
- U.S. airlines report resilient demand and are targeting fare increases and selective capacity cuts to offset higher fuel, as travel agents in Australia and Europe note shifts toward non‑Gulf routings and nearer destinations.