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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and re-evaluate their financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for as much as a quarter its operating costs. 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, and the spike in fuel costs will have "notable? impact" on their first-quarter results. AIRASIA X Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%. AIR FRANCE-KLM The airline group announced that it would increase the price of long-haul tickets to offset rising fuel costs. Cabin fares will rise by up to 50 euros (58 dollars) for a round trip. AIR INDIA The Indian flag carrier announced that it would change its fuel surcharge system from a flat-rate domestic surcharge to one based on distance. The airline said that surcharges for international routes didn't compensate for the "exponential rise" in jet fuel costs. AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict broke. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. ALASKA AIR The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, including Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars. AMERICAN AIRLINES The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag on short-haul and domestic international flights. The airline has also reduced certain benefits for economy travelers. The fuel price increase was expected to cause a $400-million increase in the first quarter expenses. CATHAY PACIFIC Hong Kong Airlines said that it will cancel about 2% scheduled passenger flights from mid-May to the end of June. HK Express, its budget airline, is also cutting around 6% flights. The carrier had previously announced that it would increase its fuel surcharge across all routes by 34% from April 1, and to review the charges every two weeks. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review its pricing strategies and network strategies, and try to minimize the impact. CHINA EASTERN EXPRESS AIRLINES Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and increase fees for checked baggage - a $10 increase on first and second bags, and a $50 fee on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. Delta CEO said that it would not update its full-year forecast due to uncertainty about how long fuel prices would rise. EASYJET EasyJet CEO Kentonjarvis stated that European consumers can expect to see a rise in ticket prices at the end of summer when fuel hedges are no longer available. FRONTIER AÉRIENS Fuel prices have risen significantly since the airline's forecast, and it is now reviewing its full-year outlook. GREATER BAY Airlines The Hong Kong based company announced that it will increase fuel surcharges for most routes starting April 1. However, they will remain unchanged for routes in mainland China and Japan. The carrier has announced that its surcharge on flights between Hong Kong, Philippines and other Asian countries will more than double. HONG KONG Airlines The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49). British Airways' owner IAG stated on March 10, that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel in the short to medium term. INDIGO India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for fuel tax reductions by the Indian government. JETBLUE AERWAYS Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "rising operating expenses". The airline said that baggage prices would rise either by $4 or $9. Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset rising fuel costs. PAKISTAN INTERNATIONAL FLIGHTS The airline said that it would increase domestic flight fares by $20, and international flight fares up to $100. It cited higher fuel surcharges. QANTAS AIRWAYS Qantas, an Australian airline, said that it has delayed a planned A$150-million ($106-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5 billion to A$3.1-3.33 billion. Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couple hundred" of flights. SAS, which has already raised flight prices, stated that the surge in fuel costs would be a "blow" to the aviation industry, even if they tried to absorb them. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES The American carrier announced that it would increase checked baggage fees for the first bag by $10 and for the second bag by $55. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. TURKISH AIRLINES LUFTHANSA SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and Canada from May 1. Bookings made after April 1 will be subject to the surcharge. Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash. T'WAY AIR As part of its efforts to combat the effects of the Middle East war, the South Korean low cost carrier announced on April 13 that it will furlough certain cabin crew members without pay in May and in June. UNITED AIRLINES Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027. United was able to increase fares in response to the rapid rise in oil prices and jet fuel, said Chief Commercial Officer Andrew Nocella. In an email, the carrier said that it would also increase first and second checked bags fees by $10 to customers traveling in the U.S.A., Mexico, Canada, and Latin America. VIETJET Due to possible fuel shortages, the Vietnamese budget airline has adjusted flight frequencies on certain routes. VIETNAM Airlines Vietnam's Aviation Authority announced that the carrier will cancel 23 flights per day on domestic routes starting in April after it requested assistance from the government to remove a tax on jet fuel. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia announced that it would be adjusting its fares in order to reflect the rising costs across the aviation industry, which were said to have been exacerbated significantly by the Middle East situation. WESTJET Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.
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Australia Inc. begins to feel the fallout of the Iran war, increasing stagflation risks
Two of Australia's top companies have issued profit warnings, and the 'crash in sentiment in the business community indicates that rising prices are causing pain, increasing the risk of stagflation. Qantas Airways, the?country's?top airline?and Westpac Banking Corp., the second-largest lender?both warned that their earnings might be affected by rising fuel prices. Westpac stated that the expected slowdown in economic growth would create a challenging environment for certain customers. "The supply shock from energy market disruption is expected to lead to higher inflation and interest rates," Westpac said. The 'updates' are the most clear indications to date of how the Middle East conflict, and fuel crisis that has resulted from it, is impacting on the bottom line?of Australian companies. The comments came on the same day that surveys showed that consumer and business confidence had plummeted, and Reserve Bank of Australia's Deputy Governor Andrew Hauser warned of a "central bank nightmare": stagflationary stress - high inflation and low activity. Qantas said its jet fuel bill could be as high as A$800,000,000 ($567,000,000) for the second half?of?its financial years ending in June, or 32% more than they had previously predicted due to a rise in oil prices. They also announced that it has cut flights and raised fares. Qantas, in an update on the market, said that jet fuel prices had more than doubled. They remained highly volatile. The airline added that it closely monitored the "dynamic" environment and was prepared to take additional steps to counter the fuel price increases. Qantas said that it has also delayed a planned A$150m share buyback because of the increased uncertainty. Westpac increased its credit provisions because it anticipated that borrowers would face a more difficult outlook as a result of rising interest rates and prices. The provisioning level was the highest since the COVID-19 pandemic. The longer the war, the more it will hurt Investors were more surprised by Westpac's warning than Qantas's. The bank's share price fell 3.7% while Qantas's dropped 1%. Omkar Joshi is the chief investment officer of Opal Capital Management. He said, "Westpac's talk about higher bad debts for some?of its energy-exposed clients" was interesting. Investors say that the longer the Middle East conflict continues, the greater the material impact it will have on the economy, leading to a rise in profit warnings. National Australia Bank’s index of business optimism fell?29 to -29 in march, a magnitude that is only seen in major crises such as the 2020 pandemic. Separate survey shows consumer sentiment fell by 12.5% in April, its lowest level in over a year. In New Zealand, on Monday, a2 Milk cut its profit guidance for fiscal 2026, citing disruptions in its supply chain due to the Middle East conflict. Joshi, of Opal Capital Management, said that recession or stagflation were "definitely real risks". Has the risk increased over the past six weeks?" "I'd say it has definitely increased."
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Lufthansa prepares for a fuel crunch that could force fleet reductions
Carsten 'Spohr, the chief executive of Lufthansa, said that due to the Iran War, jet?fuel supply is expected to be constrained throughout 'the year. This could lead to increased costs. In an interview with the German newspaper Frankfurter Allgemeine Zeitung published on Tuesday, Spohr said that "Kerosene is going to be in short supply for the rest of the season and more expensive." Spohr also stated that record revenues on Asian routes helped to offset the rising cost of kerosene. Spohr stated that the group has not yet grounded any aircraft because of fuel shortages but warned it may be "unavoidable" as kerosene is already?critical? at some airports in Asia. Spohr said that Lufthansa had prepared "contingency plans" which included a?cutting of its capacity by 2,5% or 5%. This would involve the 'grounding' of 20-40 older and 'less fuel efficient?planes, which were earmarked for retirement.
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Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war on Iran is causing financial strain on Australian and New Zealand companies, as higher fuel prices are causing inflation and denting consumer and business confidence. Westpac Banking Corp. and Qantas Airways warned Tuesday that their earnings would be affected by the soaring price of fuel and by consumers who are struggling to pay 'high' prices and incur high borrowing costs. Some of the companies from Australia and New Zealand have reported an impact on their business due to the Middle East conflict. Air New Zealand New Zealand's Flag carrier announced a price increase in March after suspending its earnings forecast for the full year. The airline announced on April 7 that it would cut flights by 4% and 1%, respectively. a2 Milk New Zealand's A2?Milk has cut its profit forecast for fiscal 2026 as higher freight costs and supply chain disruptions due to conflict have affected the availability of its China-label infant formula product in the country's biggest market. Cleanaway Waste Management: The company's full-year earnings forecast was cut by A$20,000,000 ($14.17 Million) largely due to?higher costs and lower activity as well as timing differences in cost recoveries. Fonterra New Zealand's largest dairy producer stated that the conflict is impacting its supply chain and could increase inventory levels and costs during the second half of this year. It also said the volatility in global commodities prices would be a result. Orora: Orora, a packaging company, has lowered its earnings forecasts for its French subsidiary Saverglass. It also cancelled its share-buyback program citing war impacts. Due to the closing of shipping routes, the company also stopped bottle production in its glass production plant at Ras al-Khaimah (United Arab Emirates). Qantas : Qantas Airways - Australia's flag carrier - has raised its fuel costs outlook for the second halves of the year up to A$800m and announced that it had not begun its planned share purchase of A$150m, citing sharply increased and volatile jet fuel price. Qantas has increased fares to offset the rising cost of its services and is shifting flights?towards stronger routes, such as Paris and Rome where demand remains strong, while cutting capacity domestically by approximately 5 percentage points during the second quarter. Virgin Australia Virgin Australia announced in mid-March it was adjusting its fares due to the rising costs of the aviation industry, which are "exacerbated" by the Middle East situation. Westpac: Westpac, Australia's no. Westpac, Australia's no. Westpac's net?interest?margin for its Treasury and Markets division was lower amid the interest rate volatility related to the conflict. A weaker outlook had already led to higher credit provisioning. Westpac has increased its provision for bad debts since the COVID-19 pandemic.
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Officials say that a Russian drone attack on a Ukrainian port damaged a Panama-flagged vessel
Russian drones attacked Ukraine’s Izmail port in southern Odesa overnight, damaging a civilian Panama flagged?vessel. Ukrainian?officials? said? on Tuesday. Oleksiy Kulba, Ukraine's Vice Prime Minister, said that several strikes had been recorded in the port area. He added that different infrastructure elements and equipment have also been damaged. Kuleba, a Telegram user, said that the enemy was "once again" deliberately targeting critical infrastructure and logistical facilities in the Odesa region. He said that one of the strikes caused a fire which was quickly put out. Ukrainian Sea Ports Authority stated that the port continues to operate. Oleh 'Kiper, Regional Governor of the region, said that the strikes had caused damage to a berth at the port and a barge. A building housing an atelier was also destroyed. He added that two passenger buses and seven vehicles were also damaged. Six private buildings were also attacked, and their roofs were damaged. Kiper added that an ambulance had also been?damaged. Ukraine's Air Force said that Russia launched four missiles, and 129 drones?at the country?since Monday evening. It added that the air defence units neutralised or downed one missile and 114 drones. Russia has repeatedly targeted Ukraine's maritime routes during the four-year war, striking vital ports for foreign trade and wartime economic. (Reporting and editing by Jamie Freed; Anna Pruchnicka)
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Maguire: How China is filling the energy gaps left by the US-Iran conflict.
Since the U.S.-Israel war against Iran began over a year ago, the world's biggest energy importer and consumer has changed its supplier mix to respond to the turbulence in the Middle East oil, gas and fuel flows. Kpler, a commodities intelligence company, shows that China will import roughly half its total crude oil, refined fuels and liquefied gas (LNG) as well as liquefied petrol gas (LPG), from the Middle East by 2025. The onset of the?U.S. The war between Israel and the United States against Iran has slowed down tanker shipping from the Middle East into other regions. This has forced China and other major importers of energy to'search for alternative sources'. This article will show you how China has historically relied on Middle East energy products and which countries are increasing their shipments to China now that the war against Iran has stopped all shipping through the Strait of Hormuz. CRUDE OIL AND REFINED PRODUCTS Kpler data indicates that China will import 642 million tons of crude and refined fuels in 2025. Of these, 317 million tons, or 49.4%, are from Middle Eastern suppliers. The Middle East is the only region that comes close to meeting China's energy import needs. South America ranks second with a share of 12%, while East Asia and West Africa each have a share of about 8.5%. The Middle East will supply around 52% (or 1.9 billion barrels) of China's total crude oil imports by 2025. The Middle East's share in China's total imports of oil has plummeted due to the reduction of outbound oil shipments since the beginning of the war at the end February. It fell to a record low of 31% only in May. The total crude oil exports to China from the Middle East were 581 millions barrels between January and May. This represents a 28% drop from the same period in 2025. China is increasing imports from South America, Eastern Europe and Russia to make up for the shortfalls in Iran and Saudi Arabia. Brazil and Russia have both seen a strong increase year-over-year so far this 2026. China's total crude oil imports through the first five month of 2026 are roughly 10% lower than the same period in 2025. This shows China's ongoing difficulties replacing Middle Eastern supply. China's fuel imports have decreased by 11% from January to May, compared with the same period in 2025. They now total around 51 million barrels. Kpler reports that Middle Eastern suppliers will account for 41% of China’s total imported refined products in 2025. However, they supplied less than 1% of the product in May due to the closure of shipping routes. China's fuel exports to the Middle East have dropped by 20% from January to May to 19.2 million barrels. Imports from other regions are also down around 4% compared to last year, to 31.6 million barrels. Algeria and Egypt have both seen a steep increase in fuel exports from China in 2026. LNG & LPG In 2025, China imported about 40% of its LPG and LNG supplies from Middle Eastern countries. The closure of outbound traffic has affected China's gas market. China's total LNG and LPG imports from the Middle East fell by 43% between January and May to just over 9 million metric tonnes from 15 million tons in the same period last year. The total gas shipments of all other regions also decreased this year but only by 12%. This shows that the Middle East has seen a much greater drop in volumes than other suppliers. Total LNG exports to China from the Middle East during January-May are estimated at around 6 million tonnes, or about 2.5 million tonnes, or approximately 30% less than in the same months of 2025. Australasia, another major LNG exporting region, has also seen a year-over-year decline in LNG sales to China. This is primarily due to the continued weakness in China's key industrial sectors so far in 2026. China's total LNG exports are still down only 15% this year. This means that the Middle East has seen a drop in imports twice as large as China's total LNG exports. China's total LPG imports - used mostly by petrochemical companies and rural areas to heat and cook - are down by about 25% compared with a year earlier. The war against Iran has not had a material impact on China's imports of LPG from the Middle East. The country's chemical sector is still struggling, and this means that the overall demand for LPG has remained muted in comparison to last year. Meanwhile, demand for household heating will have peaked in early January, at the height of winter. The Middle East conflict could have a greater impact on China's LPG export volumes if the Middle East conflict continues for several months longer and impacts restocking patterns ahead of winter next year. These are the opinions of a columnist who writes for. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Wall Street Journal, April 14,
These are the most popular?stories from the Wall Street Journal. These stories have not been?verified? and we cannot vouch for their accuracy. After peace talks with Iran broke down over the weekend, the U.S. placed a blockade in the Strait of Hormuz. This could cause another shock to an economy already battered by weeks of war. Saudi Arabia has urged the United States to drop its blockade of the Strait of Hormuz and?return to the negotiating table. Saudi Arabia is pressing the United States to end its blockade of Strait of Hormuz, and return to the negotiation table. They fear that President Donald Trump's decision to close the Strait of Hormuz could cause Iran to escalate the situation and disrupt other vital shipping routes. The Wall Street Journal publisher Dow Jones was dismissed by a federal judge Monday. Los 'Angeles schools are scrambling at the last minute to reach a deal with a major union in order to avoid a possible strike on Tuesday that could shut down the country's second largest school district. Qantas Airways, Australia's largest airline, said that its near-term jet-fuel bill would be 32% higher than originally anticipated due to the Iran conflict.
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Data shows that US-sanctioned tanks pass through the Strait of Hormuz in spite of US blockade
A Chinese tanker sanctioned?by?the United States?passed through the 'Strait of Hormuz?on?Tuesday, despite a??U.S. Shipping data revealed a blockade at the chokepoint. Data from LSEG MarineTraffic, and Kpler showed that the Rich Starry was the first vessel to pass through the strait, and exit the Gulf, since the blockade started. The United States sanctioned the tanker and its owner, Shanghai Xuanrun Ship?Co Ltd for their dealings with Iran. The company was not immediately available for comment. According to data, Rich Starry is a medium-range vessel that carries about 250,000 barrels methanol. The data indicated that the ship loaded its cargo at the last port it visited, Hamriyah in the United Arab Emirates. Data showed that the Chinese-owned tanker had Chinese crew on board. LSEG data revealed that another U.S. sanctioned tanker Murlikishan also headed into the strait Tuesday. Kpler data indicated that the empty handysize tanker is expected to be loaded with fuel oil in Iraq on 16 April. The vessel - formerly known as MKA - has transported Russian and Iranian oil.
Data shows that Kazakhstan Q1 oil imports are up 7% year-on-year due to a CPC boost.
Calculations based on official sources and data showed that Kazakhstan increased its oil exports from January to March by 7%, to 19.51 million metric tonnes (1.63 millions barrels per day), thanks to an increase in supply via the Caspian Pipeline.
The oil output and exports of Kazakhstan, a country that ranks among the top 10 oil producers, are in the spotlight. This is because the Central Asian nation has exceeded the quotas set by the OPEC+ group, which has angered several members, including Saudi Arabia.
The Caspian Pipeline Consortium exports oil via the Black Sea from Kazakhstan. Drone attacks have plagued it, as has a dispute over terminal equipment in Russia's Black Sea Port of Novorossiisk.
In February, a Russian drone is believed to have attacked a CPC pumping facility in the southern part of the country. A nearby oil depot in March was also set on fire by an alleged Ukrainian drone.
According to the Situational and Analysis Center for Fuel and Energy Complex of the Energy Ministry in Kazakhstan, exports through the CPC increased 11% compared to a year ago to 16,388 millions tons.
The data revealed that supplies from the Chevron Tengiz oilfield - the largest in the country - grew by 26% during the period, to 8.944 millions tons, due to the expansion of the field.
Exports via the Atasu - Alashankou pipeline to China dropped by 11% to 238,000 tonnes in the first quarter of this year.
The amount of oil exported by Kazakhstan via the Druzhba pipe, built in the Soviet Union and running through Russia into Germany, increased from 300.000 tons to 377,000 tonnes in January-March 2024.
Kaztransoil reports that supplies through the Baku-Tbilisi - Ceyhan pipeline, which was designed to bypass Russia, decreased in the first quarter from 364,650 tones in the previous period. Mark Potter is responsible for reporting and editing.
(source: Reuters)