Jet fuel costs have climbed sharply in recent weeks - rising from roughly $85-$90 per barrel to the $150-$200 per barrel range - creating acute financial pressure on an aviation sector where fuel can account for as much as 25% of operating expenses. The spike, linked to conflict in the Middle East, has led airlines to take a variety of actions to shore up revenue and control costs. Below is an alphabetical account of the reactions reported by carriers.
AEGEAN AIRLINES - The Greek carrier said suspended flights to the Middle East and the sharp increase in fuel prices will have a "notable impact" on its first-quarter results.
AIRASIA X - Executives at the Malaysian group said they have trimmed capacity by 10% across the group and imposed a general fuel surcharge of about 20%.
AIR FRANCE-KLM - The airline group announced plans to raise long-haul ticket prices to help address surging fuel costs, setting cabin fares higher by 50 euros per round trip.
AIR INDIA - The Indian flag carrier said it will replace a flat domestic fuel surcharge with a distance-based grid. The airline added that existing surcharges on international routes did not adequately compensate for the exponential rise in jet fuel prices.
AIR NEW ZEALAND - On April 7 the carrier said it would cut flights through May and June and increase fares. It was among the first to announce wide ticket-price increases when the conflict began and has suspended its full-year earnings forecast in light of the volatility in fuel markets.
AKASA AIR - India’s Akasa Air said it is introducing a fuel surcharge on domestic and international tickets ranging from 199 to 1,300 Indian rupees (about $2 to $14).
ALASKA AIR - The U.S. carrier said it will raise fees for checked baggage on North American flights, increasing the first checked-bag fee by $5 and the second by $10, with the same fee structure applying to its Hawaiian Airlines unit. The airline also raised the price for a third checked bag from $50 to $200.
AMERICAN AIRLINES - The carrier said it will increase checked-baggage fees by $10 for the first and second bags and by $150 for the third bag on domestic and short-haul international flights. It also said it had trimmed certain economy-class benefits and had previously estimated a $400 million rise in first-quarter expenses due to higher fuel prices.
CATHAY PACIFIC - The Hong Kong-based carrier said it would increase its fuel surcharge by 34% across routes from April 1 and will review those levies every two weeks. The airline’s chief executive said it intends to maintain flight capacity despite high fuel prices, but that its 10% passenger capacity growth plan could be revisited if demand softens as a result of elevated fares.
CEBU AIR - The Philippines-based airline described the sharp rise in fuel prices as a key concern and said it will continue to review pricing and network strategies to limit the financial impact.
CHINA EASTERN AIRLINES - The carrier said it would raise fuel surcharges on domestic flights beginning April 5. Flights of 800km and below will incur a 60 yuan surcharge (about $9), while flights over 800km will face a 120 yuan surcharge.
DELTA AIR LINES - Delta said it would pare capacity by roughly 3.5 percentage points compared with its earlier plan and increase checked-bag fees to help offset surging fuel costs. The airline announced a $10 increase for the first and second checked bags and a $50 rise for the third. Delta removed all planned capacity growth for the current quarter and predicted profit below Wall Street expectations, and its chief executive said the carrier would hold off on updating its full-year outlook because of uncertainty over the duration of the fuel price spike.
EASYJET - EasyJet’s chief executive, Kenton Jarvis, said European passengers should expect higher ticket prices toward the end of the summer when existing fuel hedges expire.
FRONTIER AIRLINES - The U.S. low-cost carrier said it is re-examining its full-year forecast after issuing guidance earlier, citing the significant increase in fuel prices since that outlook was provided.
GREATER BAY AIRLINES - The Hong Kong-based operator said it will increase fuel surcharges on most routes from April 1, while keeping charges unchanged on routes to mainland China and Japan. The airline also said the surcharge on flights between Hong Kong and the Philippines will more than double.
HONG KONG AIRLINES - The carrier announced fuel surcharge increases of up to 35% from March 12, with the largest rises on services between Hong Kong and the Maldives, Bangladesh and Nepal where charges would increase to HK$384 (about $49) from HK$284.
IAG - The owner of British Airways said on March 10 it did not intend to increase ticket prices immediately, citing that it had hedged much of its fuel requirements for the short- to medium-term.
INDIGO - India’s largest airline said it would introduce fuel charges on domestic and international flights from March 14, including a 900 rupee charge for flights to the Middle East and a 2,300 rupee charge for flights to Europe. The company is also lobbying the Indian government to reduce fuel taxes, sources said.
JETBLUE AIRWAYS - The U.S. low-cost carrier said it would raise fees for optional services such as checked baggage as it faces "rising operating costs." Baggage fees will increase by either $4 or $9, the airline said.
KOREAN AIR - The South Korean flag carrier said it will move into emergency management mode from April as rising oil prices affect costs, a source familiar with the matter said. The airline plans phased response measures tied to oil price levels and said it will intensify company-wide cost-efficiency efforts to counter surging fuel costs.
PAKISTAN INTERNATIONAL AIRLINES - The carrier said it would raise domestic fares by $20 and international fares by up to $100, citing higher fuel surcharges as the reason.
SAS - The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices, after having canceled a few hundred flights in March. SAS, which had already raised fares, said even absorbing rising fuel costs would still represent a significant blow to the industry.
SPRING AIRLINES - The Chinese budget carrier said it would increase fuel surcharges on domestic flights from April 5, with details to be provided at a later date.
SOUTHWEST AIRLINES - The U.S. carrier said it would increase checked-baggage fees by $10 for the first and second bags, taking the first bag to $45 and the second bag to $55.
TAP - Portugal’s airline said its price increases would partially offset the revenue impact from changing fuel prices.
THAI AIRWAYS - The carrier announced fare increases of between 10% and 15% to address rising fuel costs.
TURKISH AIRLINES, LUFTHANSA - SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would levy a temporary fuel surcharge of 10 euros per passenger on routes between Turkey and Europe from May 1. The surcharge applies to bookings made on or after April 1 for departures on or after May 1.
UNITED AIRLINES - The U.S. carrier said it is cutting unprofitable flights over the next two quarters as it positions for oil prices to remain above $100 per barrel through the end of 2027, according to remarks by its chief executive. United said it has been able to raise fares without materially hurting bookings in response to the rapid increases in oil and jet fuel. The airline is also increasing first- and second-checked-bag fees by $10 for customers traveling in the U.S., Mexico, Canada and Latin America.
VIETJET - The Vietnamese low-cost carrier said it has adjusted flight frequency on selected routes amid concerns about potential fuel shortages.
VIETNAM AIRLINES - Vietnam’s aviation authority said the carrier plans to cancel 23 domestic flights per week from April, following the airline’s request for government help to remove an environmental tax on jet fuel.
VIRGIN AUSTRALIA - The airline said it was updating fares to reflect higher cost pressures across the sector, which it said were being significantly worsened by the situation in the Middle East.
WESTJET - The Canadian carrier will add a C$60 (about $43) fuel surcharge to some bookings and combine flights as costs rise sharply, according to reports.
Currency conversions referenced in carrier announcements and surcharges in this report use the following rates: ($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).