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Airlines Reel as Oil Tops $100, Jet Fuel Soars, Fares Jump

Analysts warn prolonged Gulf disruptions could force mass groundings.

Overview

  • Crude traded above $100–$110 a barrel as traffic through the Strait of Hormuz stalled, with jet fuel costs reported to have more than doubled in some measures.
  • Global airline shares fell sharply, with Air New Zealand down over 9%, Korean Air about 8.5%, and major U.S. and European carriers sliding roughly 3%–7%.
  • Since Feb. 28, more than 37,000 flights linked to the Middle East have been canceled as carriers reroute, carry extra fuel, or add refueling stops, stretching crews and schedules.
  • Ticket prices spiked on select routes, including SeoulLondon fares jumping from $564 to $4,359 in a week, and Pakistan-based carriers preparing 20%–30% increases, according to local reporting.
  • Deutsche Bank warned sustained pressures could force thousands of aircraft to be grounded, while GasBuddy estimated nearly $5 billion in additional quarterly fuel costs for the three largest U.S. airlines.