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Airlines Lift Fares Worldwide as Jet Fuel Costs Soar and Gulf Hubs Slow Operations

Jet fuel has roughly doubled from pre-crisis levels, pushing fuel’s share of airline expenses toward 45–50 percent.

Overview

  • Air France-KLM confirms a €50 increase on Economy intercontinental round trips, with details for premium cabins not yet specified.
  • Carriers across Asia-Pacific raise fuel surcharges: Cathay Pacific doubles the levy with a $76 long-haul add-on, Qantas lifts international fares about 5%, Thai Airways raises 10–15%, and Air New Zealand adds $6 domestic, $12 trans-Tasman, and $54 long-haul.
  • Gulf-based airlines are operating at roughly 50–60% capacity, squeezing eastbound seat supply and contributing to widespread rerouting and cancellations.
  • Air New Zealand will cut about 5% of flights through early May, canceling roughly 1,100 services and rebooking around 44,000 passengers.
  • Kerosene prices have jumped from about $830 per ton to as high as $1,600 in Europe, with refining margins outpacing crude near $120 a barrel, prompting average ticket increases of 10–15% and raising financial risks despite hedging and tourism losses estimated by WTTC at $600 million per day.