The aviation industry was blindsided by the sudden increase in jet fuel costs from $85 to $100 to $150 to $200 per barrel during the U.S. and Israeli war against Iran. Fuel accounts for as much as a quarter or more of the operating costs, which has forced airlines to raise their fares and change their financial forecasts. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs will have a "notable" impact on its...

Alaska Air announced on Wednesday that it would raise $500 million via a debt offering. The airline is looking to bolster liquidity in the face of a rise in jet fuel prices due to war. The carrier announced that it would issue debt securities with a maturity date of 2031. After Iran closed the Strait of Hormuz, airlines around the world cut capacity and raised baggage fees. They also added fuel surcharges in order to combat the skyrocketing cost of fuel. Since the U.S. and Israeli strikes against Iran on February 28, jet fuel prices have almost doubled. Financial strains...

The U.S. National Transportation Safety Board released data last week that showed the fuel supply was cut off to both engines of a China Eastern Airlines jet?before it crashed into a hillside in southern?China, in March 2022. All 132 passengers on board were killed. The data was released by NTSB as a response to a Freedom of Information request. It came from the flight data recorder. The fuel switches on both engines were found to have been moved from their run position into the cutoff position while the aircraft was cruising at 29000 feet. The NTSB reported that engine speeds...

Israel will send jet fuel to Germany following the recent request from Berlin for assistance due to a crisis in Strait of Hormuz. The ministry did not provide details on the quantity of jet fuel, nor a timeline. The Ministry added that they would also examine how to help Germany in the matter of natural gas. The ministry stated that the decision was made by the Energy Minister Eli Cohen and the Foreign Minister Gideon Saar. Gideon Saar announced the decision to his German counterpart during a trip to Berlin. In Europe, concerns about a possible shortage of jet fuel...

LATAM Airlines cut its core earnings forecast for '2026 on Tuesday as higher jet fuel prices resulting from the conflict in the Middle East increased costs despite mitigation measures. The Chilean carrier cut its outlook for full-year adjusted earnings (EBITDA), which includes interest, taxes, and depreciation, to a range between $3.8 billion and $4.2 billion from an earlier forecast of $4.2 to $4.6 billion. Fuel prices have risen dramatically since U.S. and Israeli'strikes against Iran' disrupted air traffic through the Strait of Hormuz. This is the worst crisis for the airline industry since the COVID-19 Pandemic. LATAM estimates a $40-million...

Sean Duffy, the U.S. Secretary of Transportation, said on Tuesday that Mexico has agreed to increase aviation access to Mexico City after months of discussions. Duffy, in October, revoked the?approval? for 13 routes of Mexican carriers to the United States, and imposed additional restrictions. Mexico, he said, "illegally cancelled and frozen U.S. carrier flight without consequences" over a three-year period. Duffy stated on Tuesday that the Trump administration had reached a consensus with Mexico regarding a plan to?Mexico's compliance with an agreement signed in 2015 governing air travel between the two countries?. USDOT stated that Mexico would guarantee U.S. carriers...

Lawyer for the defunct Spirit Airlines said that on Tuesday, sharply higher jet-fuel prices forced the budget carrier to shut down. The lawyer is seeking approval for a plan to expedite asset sales and to pay retention bonuses to employees. Marshall Huebner said that at a U.S. Bankruptcy Court Hearing, the airline had learned Thursday afternoon that government financing would not be going forward. He apologized on behalf of the carrier to its customers and the American people. Last month, the Trump administration proposed a $500-million bailout to help Spirit out of bankruptcy. However, some creditors objected. Huebner stated that...

Airbus will announce a new order for 150 A220 jets on Wednesday. This is a major boost for the planemaker's small jetliner, which has lost recent orders to Brazil-based Embraer. Quebec holds a minor stake in the A220 Program, which is produced in Mirabel to the north of Montreal and on a separate assembly in Mobile, Alabama. Mirabel is where A220 planes are manufactured for non-U.S. clients. Sources said that Mark Carney, Canadian Prime Minister will attend the announcement. The matter is confidential. Airbus Canada and Carney's spokesperson declined to comment about the order or the event, which may change...

ITA Airways does not plan to reduce flights 'because of rising jet-fuel prices,' its chief executive stated on Tuesday. He added that?the group is 80% covered in fuel for the remainder of the year. Joerg Erberhart, CEO of the Italian airline, which is controlled by Lufthansa said that the company was looking to raise ticket prices by between 5% to 10% this year to compensate for fuel cost increases resulting from the U.S./Israeli war against Iran. As the Middle East conflict drives up jet fuel prices and disrupts major routes, airlines in Asia and Europe are raising fares, adding fuel...

The group's chief executive stated that ITA -Airways does not plan to reduce flights due to a rise in jet fuel prices. He added that 80% of the group's fuel requirements are covered for the remainder of the year. Joerg Eberhart, CEO of the Lufthansa group, said that the Italian airline, which is owned by Lufthansa, will increase ticket prices between 5% to 10% this year in order to offset the rise in fuel costs caused by the U.S. and Israeli 'war on Iran. Fuel is now twice as expensive as it was before the crisis. Jet fuel is responsible...

Frontier 'Group, parent company of low-cost carrier Frontier Airlines, forecast a larger-than-expected loss for the second quarter on Tuesday due to a'surge in jet fuel prices. The airline's stock?plunged by 9% during pre-market trading. As fuel costs skyrocketed after Iran closed the Strait?Hormuz, airlines around the globe cut capacity, increased fees for checked baggage and added fuel surcharges in order to cope with the soaring fuel prices. Even though most U.S. airlines meet their domestic fuel needs, they are still exposed to higher prices. Low-cost carriers, unlike full-service carriers, have less levers available to increase ancillary revenues to withstand a...

Stock markets in 'the Gulf' fell on Tuesday morning, after fresh attacks from Iran and the United States deepened the battle for the Strait of Hormuz. This was a key global energy chokepoint. Washington wants to reopen Strait of Hormuz in order to relieve the strain on the global energy supply after Iran closed the passage after the U.S.-Israel war began on February 28, 2008. The UAE has confirmed that there have been Iranian missile and drone attacks in the UAE. One of these strikes allegedly caused a fire to break out at the main oil port, Fujairah. Fujairah was...