Global airlines are moving quickly to manage a sudden and large jump in jet fuel costs, which have surged from near $85-$90 per barrel to a range of $150-$200 per barrel amid the U.S.-Israeli war on Iran. With fuel representing as much as a quarter of operating expense for some carriers, companies are deploying a mix of fare increases, surcharges, capacity adjustments and guidance revisions to preserve cash flow and limit margin erosion.
Industry context
Carriers face a dual challenge: very rapid fuel-price escalation and the operational disruption caused by regional tensions. The responses documented below, presented in alphabetical order by carrier, reflect a wide set of approaches: some airlines have added explicit fuel surcharges or moved to distance-based levies, several have pared capacity through cancelled or reduced flights, others have delayed share buybacks, suspended earnings guidance or trimmed profit forecasts, and some have adjusted ancillaries such as baggage fees.
Airline-by-airline responses
AEGEAN AIRLINES - The Greek carrier said it expects suspended services to the Middle East and sharply higher fuel costs to have a "notable impact" on first-quarter results.
AIRASIA X - Executives at the Malaysian long-haul group said they have cut about 10% of flights across the group and applied a general fuel surcharge of roughly 20%.
AIR CANADA - Canada’s largest airline suspended its full-year guidance in response to jet fuel volatility. The company previously announced plans to reduce frequency on certain routes, trimming four of its 38 daily flights to New York due to higher fuel costs.
AIR CHINA, CHINA SOUTHERN AIRLINES, CHINA EASTERN AIRLINES - China’s three largest carriers have substantially raised domestic fuel surcharges: for flights under 800 km the charge rose to 60 yuan (about $8.78) and for flights over 800 km to 120 yuan, up from previous levels of 10 yuan and 20 yuan respectively.
AIR FRANCE-KLM - The group warned its fuel bill would be higher by $2.4 billion this year and cut its capacity outlook for 2025, revising projected capacity growth to 2% to 4% from an earlier 3% to 5% range. The group previously said it would raise long-haul ticket prices, setting a cabin fare increase of 50 euros per round trip. KLM, the Dutch arm, also announced plans announced on April 16 to cancel 160 short-haul flights in Europe over the coming month as a response to higher fuel costs.
AIR INDIA - The carrier said it will change its domestic fuel surcharge from a flat fee to a distance-based grid and noted that existing international surcharges did not compensate for the exponential uptick in fuel prices.
AIR NEW ZEALAND - One of the earlier carriers to move broadly on ticket prices following the outbreak of conflict, the airline announced on April 7 that it would cut flights through May and June and raise fares. It has also suspended its full-year earnings forecast citing volatile fuel markets.
AIR TRANSAT - The Canadian leisure carrier said it will lower planned capacity by 6% from May to October, with expected cuts to European and Caribbean routes, and that its Cuba services will remain suspended until October.
AKASA AIR - India’s Akasa Air said it is implementing a fuel surcharge that will range between 199 and 1,300 Indian rupees (about $2 to $14) on domestic and international flights.
ALASKA AIR - The U.S. carrier withdrew its full-year profit outlook and warned of a steep second-quarter earnings impact as much higher fuel costs pressure margins. The airline has also cut capacity in select markets.
AMERICAN AIRLINES - The carrier significantly reduced its 2026 profit outlook, pushing the lower bound into loss territory. American said its jet fuel bill will increase by more than $4 billion this year. It has raised checked baggage fees by $10 for both the first and second bags and by $150 for the third bag on domestic and short-haul international flights, and it has trimmed certain economy passenger benefits.
ANA - The Japanese carrier estimates that higher fuel prices will raise costs by about 140 billion yen (roughly $890 million) this year, although hedging, fare increases and cost savings are expected to limit the net effect to near 60 billion yen. The airline said it is considering introducing a domestic fuel surcharge in the financial year beginning April 2027.
ASIANA AIRLINES - The South Korean carrier will cut 22 flights between April and July because of the fuel cost spike, according to a Newsis report.
CEBU AIR - The Philippines-based carrier said the sharp fuel-price rise is a major concern and that it will keep reviewing pricing and network options to lessen the impact.
DELTA AIR LINES - Delta plans to reduce capacity by approximately 3.5 percentage points from its original plan for the period and has increased fees for checked bags in an effort to offset higher jet fuel costs, adding $10 to the first and second checked bags and $50 to the third. The airline removed all planned capacity growth for the current quarter and expects profit below Wall Street estimates.
EASYJET - The European low-cost carrier warned of a larger-than-expected half-year pre-tax loss in the range of 540 million to 560 million pounds, including 25 million pounds of extra fuel costs booked in March. The group had previously announced plans to raise long-haul fares and implement a round-trip cabin fare increase of 50 euros.
FRONTIER AIRLINES - According to reporting referenced in the original text, a consortium of U.S. budget carriers including Frontier has proposed a $2.5 billion relief package to the U.S. government, representing the expected additional fuel costs for the group compared with earlier forecasts. Frontier has said it is reviewing its full-year forecast as fuel prices have climbed since it issued guidance.
GREATER BAY AIRLINES - The Hong Kong-based operator said it would raise fuel surcharges on most routes from April 1, while keeping surcharges unchanged on flights to mainland China and Japan.
HONG KONG AIRLINES - The carrier announced fuel surcharge increases of up to 35% from March 12, with the largest hikes on routes between Hong Kong and the Maldives, Bangladesh and Nepal, where the charge will move to HK$384 from HK$284.
IAG - The owner of British Airways said it will increase ticket prices to reflect higher jet fuel costs and said that, despite hedges, it is not immune to the broader fallout from fuel-price volatility.
INDIGO - India’s largest airline said it will introduce fuel surcharges on domestic and international services from March 14, including a charge of 900 rupees for flights to the Middle East and 2,300 rupees for flights to Europe.
JETBLUE AIRWAYS - JetBlue said it will slow hiring, reduce capacity and raise fares to offset higher jet fuel costs, and the airline has suspended its full-year outlook.
KOREAN AIR - The carrier will enter emergency management mode from April as oil prices push costs higher, according to a source noted in the original reporting.
LUFTHANSA GROUP - The German group introduced a new low-cost short- and medium-haul fare called "Economy Basic" that restricts free carry-on luggage to a laptop bag or small backpack. The group also previously announced the removal of 20,000 short-haul flights through October, a reduction estimated to save about 40,000 metric tons of jet fuel.
PAKISTAN INTERNATIONAL AIRLINES - The carrier said it would raise domestic fares by $20 and increase international fares by up to $100, citing higher fuel surcharges.
QANTAS AIRWAYS - Australia’s flag carrier delayed a planned A$150 million buyback and raised its estimated jet fuel bill for the second half of 2026 to between A$3.1 billion and A$3.3 billion, up from a previous forecast of A$2.5 billion.
SAS - The Scandinavian airline said it would cancel 1,000 April flights because of high oil and jet fuel prices, after cancelling several hundred flights in March.
SPIRIT AIRLINES - The U.S. low-cost carrier abruptly shut down after experiencing financial pressures, including those linked to the marked rise in fuel costs associated with the Iran war.
SPRING AIRLINES - The Chinese budget airline said it would raise fuel surcharges on domestic services from April 5, with further details to be announced later.
SOUTHWEST AIRLINES - The carrier forecast second-quarter profit below market expectations, with its CEO noting the fuel spike would be a billion-dollar headwind in the quarter. Southwest previously increased checked baggage fees by $10 for the first and second bags, to $45 and $55 respectively.
TAP - Portugal’s airline said its price increases would partially offset the revenue impact from changes in fuel costs.
THAI AIRASIA - The Thai low-cost carrier plans to reduce overall seat capacity by an average of 30% between May and June to respond to higher aviation fuel prices and weakening demand.
THAI AIRWAYS - Thailand’s national carrier said it would raise fares by 10% to 15% to address rising fuel costs.
TUI - The European travel group and airline trimmed its full-year underlying profit outlook and suspended revenue guidance, stating it incurred about 40 million euros of extra costs in March arising from the war, including repatriation and operational disruption.
TURKISH AIRLINES / SUNEXPRESS - SunExpress, the joint venture between Turkish Airlines and Lufthansa, will add a temporary fuel surcharge of 10 euros per passenger on routes between Turkey and mainland Europe for bookings made on or after April 1 for departures on or after May 1. Turkish Airlines said on April 10 that it would not distribute any dividend from 2025 net profit, opting to retain earnings to preserve cash.
T’WAY AIR - The South Korean low-cost carrier said it plans to furlough some cabin crew without pay in May and June as part of measures to cope with the war’s effects.
UNITED AIRLINES - United’s CEO Scott Kirby said ticket prices may have to rise by 15% to 20% to counter the jet fuel cost surge. The airline implemented five fare increases late in the first quarter and raised baggage fees, measures it said have begun to offset rising fuel costs. United forecast second-quarter and full-year profits below Wall Street estimates and said it expected to recover only 40% to 50% of the increase in fuel prices through fares and other revenue levers in the second quarter, improving to 70% to 80% in the third and potentially to 85% to 100% by the fourth quarter.
VIETJET - Vietnam’s budget operator said it adjusted frequencies on selected routes due to potential fuel shortages.
VIETNAM AIRLINES - The flag carrier will cancel 23 domestic flights per week from April after requesting government assistance to remove an environmental tax on jet fuel.
VIRGIN ATLANTIC - The airline is adding fuel surcharges to fares, but its CEO told a media outlet the carrier will still face difficulty returning to profitability this year.
VIRGIN AUSTRALIA - The carrier expects second-half jet fuel costs to rise by about A$30 million to A$40 million and anticipates a 1% capacity reduction in the fourth quarter.
VOLOTEA - The Spanish low-cost airline launched a pricing policy that links ticket prices to fuel costs and may impose a post-purchase surcharge of up to 14 euros per passenger per flight.
WESTJET - The Canadian airline has cut seat capacity for June according to reporting in national media. Earlier reports indicated the carrier would add a C$60 fuel surcharge to some bookings and combine flights as costs rise.
Currency conversions
The reporting used specific currency conversions: $1 = 157.1700 yen / 6.8300 Chinese yuan renminbi / 0.8539 euros / 95.0875 Indian rupees / 0.7378 pounds / 1.3910 Australian dollars / 1.3601 Canadian dollars.
Implications for operators and markets
The documented responses show a range of commercially available tactics to try to limit margin damage: direct fuel surcharges, distance-based grids, fare increases, baggage fee hikes, capacity reductions or cancellations, temporary workforce measures, suspension of buybacks or dividends, and pauses to financial guidance. The balance each carrier strikes between absorbing costs and passing them on to customers appears to be driven by network mix, hedging positions, regional demand elasticity and the degree of financial flexibility at each airline.
While some carriers have signaled that higher fares and ancillary fee increases will recover at least a portion of the extra fuel cost over several quarters, others have explicitly curtailed capacity, suspended forecasts or warned of profit shortfalls for the near term.
Summary takeaways
- Fuel costs have risen sharply to $150-$200 per barrel from prior levels near $85-$90, driven by geopolitical conflict, and are materially affecting airline operating costs.
- Airlines worldwide are responding with a combination of higher ticket prices, surcharges, capacity reductions, and adjustments to ancillary fees; many have revised or suspended financial guidance.
- The impact on profitability varies by carrier depending on hedges, ability to raise fares, route mix and available liquidity, but many carriers expect near-term profit pressure.
Note: This article catalogs the measures carriers have announced or taken and the financial and operational actions they reported in the context provided. It does not project future outcomes beyond what carriers stated in their disclosures.