Factbox: Price hikes, outlook cuts - What airlines are doing as fuel costs surge

Air New Zealand

21/04/2026 14:27

Corrects typographical error in JetBlue CEO's name in paragraph 26

April 21 (Reuters) - A surge in jet fuel prices driven by the U.S.-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise their financial outlooks.

Jet fuel prices have soared from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, a financial hit for an industry where fuel accounts for up to a quarter of operating expenses.

Below is a list of how airlines are responding, in alphabetical order:

AEGEAN AIRLINES AGNr.AT

The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a "notable impact" on its first-quarter results.

AIRASIA X AIRX.KL

The Malaysian airline's executives said the company had cut 10% of flights across the group, with a surcharge of about 20% on fuel in general.

AIR CANADA AC.TO

Canada's largest carrier plans to trim four of its 38 daily flights to New York due to higher fuel prices. The four flights to JFK International Airport will be cut from June 1 to October 25, 2026.

AIR FRANCE-KLM AIRF.PA

The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros ($58) per round trip.

The group's Dutch arm KLM said on April 16 it would cancel 160 flights in Europe in the coming month due to rising fuel costs.

AIR INDIA

The Indian carrier said it would revise its fuel surcharge from a flat domestic surcharge to a distance-based grid. It said surcharges on international routes did not compensate for the exponential rise in fuel prices.

AIR NEW ZEALAND AIR.NZ

The airline said on April 7 it would slash flights through May and June and hike fares, having been one of the first to announce broad increases to ticket prices when the conflict broke out. It also suspended its full-year earnings forecast due to fuel market volatility.

AKASA AIR

India's Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.

ALASKA AIR ALK.N

The carrier withdrew its full-year profit forecast as the sharp rise in jet fuel prices put pressure on margins.

AMERICAN AIRLINES AAL.O

The U.S. carrier said it would hike checked baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag on domestic and short-haul international flights. It also trimmed certain benefits for economy passengers.

ASIANA AIRLINES 020560.KS

The South Korean airline will slash 22 flights between April and July due to the fuel cost increase, Newsis reported.

CATHAY PACIFIC 0293.HK

The Hong Kong airline group is aiming to raise about HK$2 billion ($255 million) through a one- or two-tranche fixed-rate Hong Kong dollar bond, according to two sources with direct knowledge of the matter.

CEBU AIR CEB.PS

The Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.

CHINA EASTERN AIRLINES 600115.SS

The airline said it would raise fuel surcharges for domestic flights from April 5, with flights of 800km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800km.

DELTA AIR LINES DAL.N

Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags in an attempt to offset soaring jet fuel costs, with an increase of $10 on first and second checked bags and a $50 increase on the third.

The U.S. airline pulled all planned capacity growth for the current quarter and forecast profit below Wall Street expectations.

EASYJET  EZJ.L

EasyJet warned of a bigger half-year pre-tax loss of between 540 million and 560 million pounds ($731 million and $758 million), including 25 million pounds in extra fuel costs in March.

FRONTIER AIRLINES ULCC.O

The U.S. airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.

GREATER BAY AIRLINES

The Hong Kong-based company said it would raise fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes.

HONG KONG AIRLINES

The airline said it would raise fuel surcharges by up to 35% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284.

IAG ICAG.L

British Airways-owner IAG said in March it did not plan to increase ticket prices immediately, as it had hedged much of its fuel for the short- to medium-term.

INDIGO INGL.NS

India's biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe.

JETBLUE AIRWAYS JBLU.O

Joanna Geraghty, CEO of the U.S.-based low-cost carrier, told employees in a memo seen by Reuters that the carrier would not consider bankruptcy this year, even as rising jet fuel costs threaten its financial recovery. The company entered a $500 million debt financing agreement, according to an SEC filing.

KOREAN AIR

The South Korean carrier will enter emergency management mode from April, as rising oil prices weigh on costs, a source with knowledge of the matter told Reuters.

LUFTHANSA LHAG.DE

The airline group said it would ground 27 planes servicing its short-haul CityLine subsidiary earlier than planned, citing jet fuel prices and costs from industrial action. Lufthansa will also withdraw four older Airbus A340-600 long-haul aircraft at the end of the summer and reduce short and medium-haul offerings by five aircraft in winter 2026/2027.

PAKISTAN INTERNATIONAL AIRLINES

The carrier said it would raise domestic flight fares by $20 and international fares by up to $100, citing higher fuel surcharges.

QANTAS AIRWAYS QAN.AX

Australia's Qantas said it had delayed a planned A$150 million ($106 million) buyback and was raising its estimated fuel bill for the second half of 2026 to A$3.1 billion-A$3.3 billion, from a previous A$2.5 billion forecast.

SAS

The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices, after cancelling a "couple hundred" flights in March.

SPIRIT AIRLINES

The U.S. low-cost carrier asked the Trump administration for hundreds of millions of dollars in emergency funding to offset rising fuel prices and stave off a possible liquidation, Air Current reported citing people familiar with the matter.

SPRING AIRLINES 601021.SS

The budget Chinese airline said it would raise fuel surcharges on domestic flights from April 5, with details to be announced later.

SOUTHWEST AIRLINES LUV.N

The American carrier said it would hike checked baggage fees by $10 for the first and second bags, raising costs to $45 for the first bag and $55 for the second.

TAP

The Portuguese airline said its price hikes would partially mitigate the impact of fuel price changes on its revenue.

THAI AIRWAYS THAI.BK

The Thailand-based carrier said it would raise fares by 10% to 15% to address rising fuel costs.

TURKISH AIRLINES THYAO.IS, LUFTHANSA LHAG.DE

SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros per passenger from May 1 on routes between Turkey and Europe. The surcharge will apply to bookings made on or after April 1 for departures on or after May 1.

Turkish Airlines said on April 10 it had decided not to distribute any dividend from its 2025 net profit, opting to retain earnings to preserve cash.

T'WAY AIR 091810.KS

The South Korean low-cost carrier said it planned to furlough some of its cabin crew without pay in May and June as part of measures to address the impact of the war.

UNITED AIRLINES UAL.O

The U.S. airline is cutting unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said.

It is also increasing first and second checked bag fees by $10 for customers travelling in the U.S., Mexico and Canada and Latin America, it said in an e-mailed statement to Reuters.

VIETJET VJC.HM

The Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.

VIETNAM AIRLINES HVN.HM

The carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam's aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.

VIRGIN ATLANTIC

The airline is adding fuel surcharges to fares but will still struggle to return to profitability this year, its CEO Corneel Koster told the Financial Times.

VIRGIN AUSTRALIA VGN.AX

Virgin Australia said it expected an increase in jet fuel cost of around A$30 million-A$40 million for the second half of this fiscal year, and a 1% reduction in capacity in the fourth quarter.

VOLOTEA

The Spanish low-cost airline introduced a new pricing policy linking ticket prices to fuel costs, which could potentially add a post-purchase surcharge of up to 14 euros ($16.50) per passenger, per flight.

WESTJET

The Canadian airline has cut seat capacity for June as costs soar, the Globe and Mail reported. The carrier will add a C$60 ($43) fuel surcharge to some bookings and combine flights as costs soar, the Canadian Press previously reported.

($1 = 0.8557 euros)

($1 = 92.6520 Indian rupees)

($1 = 6.8306 Chinese yuan renminbi)

($1 = 7.8319 Hong Kong dollars)

($1 = 1.3834 Canadian dollars)

($1 = 1.4118 Australian dollars)

($1 = 0.7389 pounds)

($1 = 7.8302 Hong Kong dollars)

(Reporting by Mireia Merino, Marleen Kaesebier, Bernadette Hogg, Dimitri Rhodes and Aishwarya Jain; Editing by Matt Scuffham, Milla Nissi-Prussak and Leroy Leo)

((Bernadette.Hogg@thomsonreuters.com))