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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 change 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 where fuel can account for as much as a quarter or more of 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, as well as a spike in fuel prices will have "notable impacts" 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?said that it planned to raise long-haul ticket fares to deal with surging fuel prices, and cabin?fares are set to increase by 50 euros ($58). AIR INDIA The Indian flag carrier announced that it would change its fuel surcharge from a flat domestic surcharge to one based on distance. The airline said that surcharges for international routes do not compensate the steep 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 began. 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 imposing a fuel surcharge on both domestic and international flights ranging from 199 to 1,300 Indian Rupees ($2 - $14). 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, as well for Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars. AMERICAN AIRLINES The U.S. carrier announced that it will increase the fees for checked baggage by $50 for the third bag and $10 for the second on short-haul flights and domestic flights. The airline has also reduced?certain benefits to economy passengers. The fuel price increase was expected to cause a $400-million increase in the first quarter expenses. CATHAY PACIFIC Hong Kong Airlines announced that it will increase its fuel surcharges by 34% on all routes starting April 1, and to review them every 2 weeks. The CEO of the carrier said that it will maintain flight capacity, despite high fuel costs. However, its 10% passenger growth plan may change if there is a decline in demand due to high prices. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing 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 under 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge of 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by 3.5 percent from its original plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The price increase will be $10 for the first and second bags and $50 on the third bag. 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 warned that European consumers can expect to pay more for tickets at the end of the summer when fuel hedges end. FRONTIER AÉRIENS The airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook. The airline has revised its forecast for the full year as fuel prices have increased dramatically since it released the outlook. GREATER BAY Airlines The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan. The carrier has announced that the surcharge on flights between Hong Kong, Philippines and other destinations will be more than doubled. 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 As a result of "rising operating expenses", the low-cost carrier in the United States has increased fees for optional services, such as checked baggage. 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 a phased response based on the oil price level and increase company-wide efficiency to offset rising fuel costs. PAKISTAN INTERNATIONAL FLIGHTS The carrier announced that it would increase domestic flight fares up to $20, and international fares up to $100. It cited higher fuel surcharges. 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 "couples of hundred" flights. SAS, which has already raised flight prices, stated that even if they tried to absorb rising fuel costs, the price increase would still be a major blow to the aviation industry. 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 the fees for checked bags by $10 each for the first two bags. This will bring the cost to $45 and $55 respectively for the first bag. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The airline based in Thailand said that it would increase fares between 10% and 15% due to 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 from May 1, on routes between Turkey and Europe. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1. 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. Andrew Nocella, United's Chief Commercial Officer, said that the company was able to increase fares in response to a rapid rise in jet fuel and oil prices. In a statement sent via email, the carrier said that it would also be increasing the first and second checked bags fees by $10 to customers traveling in North America, Mexico, Canada, and Latin America. VIETJET A potential fuel shortage has led to the Vietnamese budget airline reducing 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 an environment tax on jet fuel. 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 being 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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Dubai restricts foreign flights until May 31. Letters show that Indian airlines are the hardest hit.
Due to the Iran Crisis, Dubai has limited foreign airlines to only one?flight per day to its airports. This has triggered revenue loss concerns among Indian carriers, which had more flights planned than any other airline. In a March 31 letter to the Indian government, the Federation of Indian 'Airlines (FIA), which represents IndiGo, Air India, and SpiceJet as top carriers, asked India to pressure Dubai authorities to lift curbs. If that didn't work, it suggested taking reciprocal measures against Dubai carriers such as Emirates and flydubai. Indian carriers have already been put under financial strain by higher fuel costs and longer routes to Western destinations due to the ban on using Pakistani airspace that has been in place since last year as a result of military tensions between two neighbours. Dubai Airports, in a March 27 private email, said that carriers will be allowed to make one round trip a day between the smaller Al Maktoum International Airport and Dubai International Airport, the busiest hub for international travel. The FIA said that carriers are limited to only one rotation a day until the capacity permits more. Additional slots will then be assigned if there is capacity available. The FIA notified the Indian government that curbs are not being applied to Dubai airlines like Emirates and flydubai. This could result in "substantial revenue losses". Dubai Airports and Dubai's Media office have not responded to requests for comment. Flydubai stated that its flight schedules had been approved by the appropriate authorities. Emirates did not reply to a comment request. Emirates and other Gulf carriers have complained for years about India's bilateral agreements on air services that limit the number of seats a country can deploy between nations. Indian authorities claim that such agreements protect Indian airlines from the fierce competition in the market. INDIAN CARRIERS HARDEST HIT by CAPS India was the biggest source of passengers at DXB in 2025 with 11,9 million travellers. Cirium's April and May schedule data shows that Indian airlines will be the most affected by the Dubai cap. Air India Express and Air India have more than 750 flights scheduled into DXB during that time period. IndiGo is the leader with 481, followed closely by Saudia, Gulf Air and Gulf Air who have planned 480 and 404 flights, respectively. SpiceJet, India's airline, had planned 61 flights. According to Flightradar24, the cap of one flight per day would be 30 or 31 flights for each airline. This is compared to the hundreds daily flights flown by Emirates & flydubai. IndiGo said in a press release that the Middle East Crisis and the new Dubai Extended restrictions "significantly restricted" its operations, as it had a summer schedule approved of 15 flights daily from India to Dubai. IndiGo stated in its first remarks on the crisis that "a significant part of IndiGo’s capacity and aircraft times are currently underutilized." Air India, SpiceJet, and the Indian authorities have not responded to requests for comments. Before the crisis, Indian carriers had fewer flights than other major airlines such as Lufthansa and Singapore Airlines. They have now cancelled all flights until May 31. Instead, they are adding more nonstop Asia-Europe flight to take advantage the strong passenger demand which has driven up prices.
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Zelenskiy: Ukraine will finish Druzhba pipeline repairs by spring
Ukraine has made significant improvements in restoring the damaged Druzhba pipeline and will finish the repairs by spring, said President Volodymyr Zelenskiy, amid a "bitter dispute" with Hungary over the disruption of Russian oil supplies. Hungary and Slovakia are no longer receiving Russian oil via Druzhba after a drone attack in Ukraine damaged the pipeline. Hungarian and Slovak governments, who have both maintained close energy and political ties with Russia ever since the invasion of Ukraine by Russia in 2022, accuse Kyiv for delaying repairs. Ukraine denies this. We will finish the repairs, because we agreed to it. Zelenskiy said to reporters that he had told them they would be finished by spring. "A lot of work has already been done there... Ofcourse, damaged storage tanks cannot quickly be repaired." Hungary has blocked a?90 billion-euro (103 billion-dollar) loan from the European Union to Ukraine, as long as the Druzhba remains closed. On Sunday, Hungary will hold parliamentary elections. Polls show that Prime Minister Viktor Orban is trailing the centre-right Tisza Party. A?source in the industry told us earlier this month that the best time to complete the project was April. Reporting by Olena Hartmash, Editing by Daniel Flynn
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Trump says Iran shouldn't charge tankers traveling through the Strait of Hormuz any fees
Donald Trump stated on Thursday that Iran should not charge any fees to tankers passing through the Strait of Hormuz. The area has been "blockaded" since the beginning of the Iran War, causing global energy supply to be disrupted to the greatest extent in history. Trump posted on Truth Social that there are reports Iran charges fees to oil tankers passing through the Hormuz Strait. "They should not be doing that, and if they do, they need to stop right away." Reports in the media suggested that Iran may 'want to charge a levy for passing ships. Western leaders have rejected the idea of paying such fees. Hamid Hosseini, spokesperson of Iran's Oil, Gas and Petrochemical Products Exporters' Union, was quoted by the Financial Times as saying that Iran would demand cryptocurrency toll payments to maintain control over 'Hormuz' during a 2-week ceasefire between the U.S. Trump stated in a separate tweet, without further explanation, that "you will see Oil flowing with or without Iran's help." On February 28, the U.S., Israel and other countries attacked Iran. Iran responded by launching its own strikes against Israel and Gulf States with U.S. bases. The war has risen oil prices and shook global markets. U.S. and Israeli?strikes against Iran, as well as Israeli attacks on Lebanon, have resulted in the deaths of thousands?and the displacement of millions. Trump announced on Tuesday a ceasefire between the United States and Iran, having threatened to destroy Iran’s entire civilization. The volume of ship traffic through the Strait was well below normal levels on Thursday, despite the fragile truce. Tehran maintained its control over the situation by admonishing ships to stay within its territorial waters. The war brought the traffic through the Strait, which is a chokepoint that accounts for 20% of all global oil and LNG shipments, to a near standstill.
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Brazil regulator: Enel can sell Sao Paulo's power contract in order to avoid forfeiture
Aneel, head of Brazil's energy regulator, said that a unit of Italy's Enel, located in 'Sao Paulo and at risk of losing its contract to distribute electricity because of 'alleged poor performance', could sell it to another company to avoid financial losses. The Brazilian regulator began an administrative procedure earlier this week in order to potentially revoke Enel Sao Paulo’s concession after identifying “structural failures” in the provisioning of services following recent extreme weather events. Brazil's Energy minister Alexandre Silveira stated on Wednesday that "a negotiated exit" is still possible if the regulator recommends that the federal government cancel?Enel?s contract. However, he did not give details as to what that would mean. Aneel’s head, Sandoval Feitosa, told reporters Thursday that selling Enel Sao Paulo’s concession is the only solution he can imagine. He cited a case from 2022 in Goias, where Enel had sold its concession to Equatorial. He added that "the negotiated solution, mentioned by the Minister, which I believe is also an option, will have to be structured and approved by Aneel." Enel said recently that it did not plan to abandon the concession. During the administrative process, Enel has 30 days to make its defense before the regulator decides whether or not to recommend the revocation contract in Sao Paulo. Feitosa didn't?commit to an?eventual timeline?for resolving this case but Aneel said they would work towards a resolution "as soon as possible." (Reporting and writing by Leticia Fukuchima, Editing by Cynthia Osterman).
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Spurs' Kudus may miss World Cup due to injury
Tottenham Hotspur's Mohammed Kudus suffered a setback in his recovery from quad?injury. The struggling Premier League club announced this on?Thursday. This was a blow to the Ghanaian international. Kudus (?25) was injured against Sunderland when Thomas Frank was Tottenham's coach in January. He was expected to be back in March. Kudus did not play in any matches played by Frank's successor, Igor Tudor. Tudor left Tottenham last month. Ghanaian reports stated that Kudus, who scored 13 goals in 46 appearances for Ghana, would be out of action for three more months. This could mean he won't play in the World Cup in June and July. In a press release, Tottenham, now under the coaching of Roberto De Zerbi said that Mohammed Kudus had a "setback" in his return from an injury. The club added that "he had returned to training with the team during the last week but will now need further specialist review and possibly surgery." Kudus, a Spurs player who was signed from West Ham United during the off-season, has played 19 Premier League games this season. He has scored twice and provided?five assists. Tottenham are currently in 17th position?in the table, just one point above relegation. Ghana, who fired their coach Otto Addo just 72 days before the World Cup, will be in Group 'L with Panama, England, and Croatia when the tournament begins in the United States on June 11th. (Reporting from Cairo by Mohamed Yossry, edited by Christian Radnedge.)
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US Postal Service wants to raise stamp prices to 82 Cents
Cash-strapped U.S. The cash-strapped U.S. The Postal Regulatory Commission must approve the proposal. It would increase overall mailing service prices by 4,8%. USPS warned that it may run out of money as early as February. USPS received approval earlier this?week from the Postal Regulatory Commission to temporarily increase prices for priority mail and packages by?8%, starting April 26. This is in response to rising fuel and transportation costs. USPS expects the surcharge will be in place until?January 17 Since 2007, the service has suffered net losses of $118 billion as its most profitable product - first class?mail - has dropped to its lowest level since the late 1960s. USPS reported a $1.25 billion quarterly loss in February. Separately, the commission approved USPS’s plan to suspend employer contributions beginning Friday. This will save $200 million every two weeks or $2.5 billion by September 30. Also reported USPS has struck a deal to use the Postal Service at least 1 billion packages a year or 80% volume of last year. In March, U.S. Postmaster-General?David Steiner announced that the Postal Service would be hiring restructuring advisers to address its mounting financial problems. Steiner is hoping to be able?to raise prices over the current 78-cents? for first-class postage and believes that Americans will be willing to spend 90 or 95 cents on a letter when most of the rest of the world charges $2 or more.
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Panama's president tries to calm China's tensions
On Thursday, Panamanian President Jose 'Raul Mulino sought to?calm tensions with China. He struck a?conciliatory note a day after he had called on the Asian superpower to increase inspections of Panama flagged vessels in a titt-for-tat reaction to China losing its concessions at Panamanian ports. Mulino, on a recent visit to the Balboa Port?on Pacific side of Panama Canal said: "We don't want a dispute with China." "I hope that the situation will de-escalate... that we can return to normality, both in our political relationship as well as in our understanding that the problem is one that will be solved." Mulino, when asked about?vessels flying the Panamanian flag being held in Chinese port, said that such inspections are not uncommon in global shipping. He also said that similar trends have affected other major registries including Liberia, and Marshall Islands. He said Panama is still assessing this situation. He said that the actions of Panama were not a political retaliation. Panama also wanted to confirm with Chinese authorities why vessels would be held for inspections. MINISTER LINKED INSURANCE TO COURT RULE Last month, U.S. Federal Maritime Commission stated that it was closely monitoring the surge of detentions in China for Panama-flagged ships, saying this exceeded historical norms. Mulino took a more lenient stance than Javier Martinez-Acha, the Foreign Minister. He claimed on Wednesday that an increase in inspections and arrests was due to the Panama Supreme Court's ruling against CK 'Hutchison's right of operation at the Balboa & Cristobal Terminals. The Panama Supreme Court invalidated the legal framework that supported the 1997 concession granting CK Hutchison’s Panama Ports Company, the right to operate terminals. Beijing was against this decision. The cancellation was a result of U.S. pressure to curb Chinese influence in the area around the strategic canal that handles 5%?of?global maritime traffic. CK Hutchison has launched an 'international arbitration case' against Panama, claiming damages of over $2 billion. The company, which operated these ports for almost 30 years, accused the Panamanian authorities illegally seizing their property. Mulino refused to 'comment on a recent arbitration claim made by CK Hutchison, Panama Ports Company, against Maersk which temporarily managed the terminals. Mulino said that it was not a government matter. Reporting by Elida Moreno; Writing by Natalia Siniawski, Editing by Stephen Eisenhammer and Rod Nickel
Cabin crew strike disrupts Lufthansa flights
The strike by the UFO union of cabin crew disrupted Lufthansa's flights on Friday. This was the third stoppage for the airline in just two months.
The strike, which lasted from 12:01 am to 10 pm local time (2201 GMT on Thursday to 2000 GMT on Friday) affected all Lufthansa flights departing from major hubs. Cityline cabin crews also took part in the strike at nine German airports. According to airport operator Fraport, tens of thousands of passengers are expected to be affected by delays and cancellations.
UFO said the industrial action was a result of unresolved discussions over the working conditions for 19,000 cabin staff and the redundancy policies for about 800 employees at Cityline, a Lufthansa feeder airline that is closing down.
Harry Jaeger who heads UFO's negotiations said, "This escalation was a long-awaited event." "We would like to have avoided it."
Fraport, operator of Frankfurt Airport reported that 580 flights had been cancelled. This affected 72,000 passengers, out of the 1,350 scheduled flights, and the 155,000 passengers expected for the day. Fraport said that the figures cover all airlines at the airport and not just Lufthansa. They may change as the day goes on.
Jens Ritter, brand 'chief at Lufthansa Airlines, criticized the strike for being "completely disproportionate." He said, "Regulations of the past won't carry us forward into the future, we have to speak to the union about this." The airline also offers some of the best working conditions in the industry, according to him.
In February and March, strikes by?Lufthansa pilots and cabin crew resulted in cancellations of many flights due to ongoing disputes between the German flagship carrier and its employees. (Reporting and writing by Timm Richert, Klaus Lauer. Editing by Elaine Hardcastle.)
(source: Reuters)