dailyloe.com – Major airlines are cutting flights and raising fares due to surging jet fuel prices linked to Middle East tensions. Air New Zealand, Air India, and Delta Airlines announced emergency measures this week. This follows a record high for European benchmark jet fuel.
Fuel typically constitutes 20-40% of an airline’s operating costs. The European jet fuel price hit $1,838 per tonne last week. This is more than double the $831 per tonne price before recent conflict began.
Analysts warn travellers to expect further ticket price increases. More flight cancellations are also likely as the conflict continues. The situation directly impacts global travel logistics and costs.
The Gulf region is a critical source of aviation fuel. It accounts for roughly 50% of Europe’s jet fuel imports. Most shipments transit the Strait of Hormuz, which Iran has effectively closed.
Middle Eastern refineries play a pivotal role in global supplies. Kuwait’s Al-Zour refinery alone provides about 10% of Europe’s imports. This data comes from the analytics firm Energy Intelligence.
Air New Zealand’s cancellations will affect major domestic routes. Auckland, Wellington, and Christchurch services will be reduced. Flights to smaller regional airports will remain unchanged for now.
The airline had already cut some flights last month. A spokesperson stated the ‘vast majority’ of affected customers are being rebooked. They are being offered alternative flights on the same day where possible.
‘Like airlines globally, we’re experiencing jet fuel prices that are more than double what they would usually be,’ the Air New Zealand spokesperson said. The company is adjusting its network in response. This is a direct reaction to unprecedented operating costs.
Meanwhile, Air India is changing its fuel surcharge structure for domestic flights. It will move from a flat fee to a distance-based charge. The airline has also increased the surcharge amount significantly.
These measures highlight the broad industry impact of geopolitical events. Airlines are taking immediate steps to manage soaring input costs. Passengers worldwide will feel the effects through higher fares and reduced schedules.[]
Source: BBC
