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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The global aviation industry has been thrown into chaos by a surge in jet fuel costs, which is attributed to the ongoing U.S./Israeli war against Iran. Airlines have raised fares and revised their financial forecasts. In recent days, jet fuel prices have increased from $85 to $90 per barrel to $150 to $200 per barrel for an industry where fuel accounts for as much as a quarter or more of the operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AIR NEW ZEALAND On March 10, the airline was one of the first airlines to announce a broad increase in ticket prices. It also suspended its fiscal year 2026 earnings projection due to unprecedented volatility on global jet fuel markets. Price increases for one-way economy tickets are NZ$10 ($6) domestically, NZ$20 on short-haul services internationally, and NZ$90 on long-haul flights. Further price, schedule, network, and fuel cost changes may be possible, if jet-fuel costs continue to rise. CATHAY PACIFIC AIRWAYS Hong Kong Airlines announced on March 10 that it would be adding additional flights in March to London and Zurich to accommodate disrupted travel routes. The airline stated that it reviews fuel surcharges on flights every month and kept them at $72.90 last?month for flights between Hong Kong?and Europe?or North America. HONG KONG Airlines Local carrier announced that it will increase fuel surcharges up to 35.2% starting March 12. The biggest increases are on flights between Hong Kong, Bangladesh and Nepal. Charges for these flights will go from 284 Hong Kong Dollars to 384 Hong Kong Dollars ($49). British Airways' owner IAG announced on March 10, that it did not plan to increase ticket prices immediately as it had hedged a large portion of its fuel costs for the short to mid-term. QANTAS AIRWAYS The Australian airline announced on Tuesday that it would increase fares for its international routes during the week of the 9th March and was looking at adding capacity to?its existing Europe routes in the next few months. SAS (Scandinavian Airlines), On March 10, the dominant airline of the Nordic countries announced that it had made a temporary adjustment to its prices due to rising jet fuel costs. THAI AIRWAYS The Thailand-based airline said on March 11, it would raise fares between 10% and 15% in order to combat rising fuel prices. UNITED AIRLINES Scott Kirby, the airline's CEO, said on 6 March that he expected a "meaningful hit" to the carrier's results for the first quarter due to the rising fuel prices. VIETNAM Airlines Local officials claim that the Vietnam-based airline has requested assistance from the government to remove an environment tax on jet fuel. Operating costs for Vietnamese airlines are up by 70% as a result of rising jet fuel prices. (Reporting and editing by Matt Scuffham; Marleen Kaesebier, Mireia.
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Vice-minister: Hungary sent Druzhba fact finding mission to Ukraine
Officials said that Hungary sent a fact finding?mission to Ukraine on Wednesday to investigate the Druzhba?pipeline?outage. Budapest is looking to restart the?flows?of oil amid rising global prices linked to the Middle East war. Since January, when oil flow stopped in the Druzhba Pipeline, Budapest and Kyiv have been locked in a diplomatic conflict. Viktor Orban has given a prominent place to his anti-Ukrainian rhetoric in his campaign for an April 12 election. Hungary blocked a new EU sanction against Russia, as well as a large loan to Ukraine due to the dispute. In a recorded Facebook statement, Gabor Czepek, the Hungarian Deputy Minister of Energy said: "The Government has created the delegation which is expected to conduct a fact-finding?mission?on the Druzhba Pipeline." "Our task is to assess the state of the pipeline and set up conditions for its restart." Hungary and Slovakia, which are the only European Union nations still importing Russian crude oil, have accused Ukraine for deliberately delaying the return of oil flow from political reasons. Ukraine claims that a Russian drone attacked the pipeline, causing it to be damaged and unable to be repaired. Czepek stated that Slovakia will also "take part" in the fact-finding missions, which has four member. He said that the Middle East crisis has raised the stakes and led the Hungarian Government to use strategic reserves and introduce prices protected. Orban announced the cap on fuel prices after an emergency meeting of the government on Monday. He also urged EU to suspend sanctions against Russian energy. Robert Fico, Slovakia's prime minister, said on Tuesday that after meeting EU chief Ursula von der Leyen they had agreed to resume oil transit via the Druzhba pipe via Ukraine.
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Shell, TotalEnergies, and others declare FM for their clients who purchase LNG from Qatar sources
Shell and TotalEnergies are long-term partners with QatarEnergy * Qatar halted ?production at 77 mtpa LNG ?facility By Marwa Rashad LONDON, 11th March - Three sources confirmed that several 'companies who buy LNG from QatarEnergy as portfolio players or offtakers, including Shell, TotalEnergies, and some Asian firms, have declared force majeure for the customers they supply. Qatar, the?second largest LNG exporter in the world, declared force majeure on LNG shipments last week. Shell, the largest LNG trader in the world, has declined to comment. TotalEnergies didn't immediately respond to a request for comment. Both companies have long-term partnerships with QatarEnergy, and they are both partners in the massive North Field expansion project of QatarEnergy that aims to increase capacity by 2027. Shell sells 5.2 million tonnes per annum of Qatari LNG to TotalEnergies, while analysts estimate Shell purchases 6.8 mtpa. Qatari Energy Minister,?Saad Al-Kaabi, told the Financial Times a week ago that it would take "weeks or months" for normal deliveries to resume even if today's war ended. The company declared force-majeure on LNG shipments Wednesday. Last week, sources told us that the 'FM notices' sent to clients stated that LNG deliveries for March would not be affected. The impact will only be felt in April.
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Drone strikes near Dubai airport deepen Gulf aviation chaos
On Wednesday, two drones were spotted near the main airport in Dubai and Bahrain evacuated some planes as attacks on infrastructure in the Gulf continued disrupting air traffic. The war against Iran is now entering its 12th day. U.S. and Israel's war on Iran has resulted in tens or thousands of cancellations, reroutings, and schedule changes around the world. This has shut down much of Middle?East airspace, including Qatar, due to drone and missile threats. The aviation industry is in its worst crisis since the pandemic. Dubai International Airport (DXB), which is the busiest hub of global passengers, along with other regional airports, are crucial transit points for long distance travel. As a result of the conflict, a major oil export corridor has been disrupted, causing a surge in jet fuel prices. This has led to higher fares on certain routes, and a growing concern about a wider impact?on travel demand. Air cargo that was time-sensitive was also severely affected. TWO DRONES FALL NEAR DUBAI Aiport Bahrain's Civil Aviation Affairs announced on Wednesday that several Gulf Air aircraft without passengers and cargo planes were moved to alternative airports in order to "ensure continuity and efficiency" of air operations during the crisis. The company did not give any further details. Gulf Air did not respond to a request for comment. FlightRadar24's tracking data showed that several passenger jets were moving towards Saudi Arabia in the last 24 hours. Dubai's media office confirmed that two drones had fallen near Dubai Airport, but said air traffic was running as usual. There was no damage visible to the airport, according to witnesses. The attack was a new 'threat' after DXB Airport, Abu Dhabi International Airport and Kuwait's airports were damaged on the first day. Qatar Airways and regional carriers such as Etihad in Abu Dhabi, Emirates in Dubai, and Emirates in Dubai have resumed certain flights, but they are still operating at a much lower capacity. Authorities reported that four people were injured in the attack.
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Saudi Aramco is seeking dual Gulf and Red Sea buyers plans amid Iran crisis
Multiple sources claim that Saudi Aramco asked Asian buyers to offer plans for loading crude oil at its main Gulf export terminal, Ras Tanura, and Yanbu in the Red Sea due to the disruptions caused by war in Iran. The shipping through the Strait of Hormuz, at the southern end of the Gulf, near Iran is largely stopped. This has forced producers such as Saudi Arabia to adjust export plans and production. Sources said that Aramco requested Asian buyers to submit nomination plans both for Ras Tanura and 'Yanbu' for April-loading cargoes. The Yanbu option is only available for the purchase of Arab Light crude. Two sources confirmed that Aramco also extended the deadline until Friday for buyers to submit nominations. Around the 10th day of every month, allocations for Asia are released. They are closely watched by traders to gauge demand in the largest crude-importing area of the world. Aramco has declined to comment. The world's largest oil exporter is rerouting a portion of its crude oil bound for export via pipeline to Yanbu in order to avoid the Strait of Hormuz. LSEG data revealed that Yanbu loadings in the first nine days of March averaged?2.2m bpd, up from 1.1m bpd during February. Before the war, Saudi Arabia was exporting 6?million bpd via the Strait of Hormuz. (Reporting and editing by Louise Heavens, Jason Neely and Siyi Verma from Singapore and New Delhi)
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Lufthansa calls pilots' strike "incomprehensible" amid Iran War
Lufthansa criticised on Wednesday a planned 2-day walkout of its pilots in this week. This comes as the global aviation sector grapples with its 'deepest crisis since the pandemic. Michael Niggemann, a board member, said: "This escalation is?completely?incomprehensible. Especially at a time of new geopolitical uncertainties with the war on Iran. Passengers worldwide are affected." The pilots' union VC announced a strike for Thursday and Friday. They said that Lufthansa had not yet made any offer in their long-running dispute over company pensions. It said: "It is of no use to only show a willingness to talk, but to refuse to discuss substantive improvements to the company pension scheme." According to the union the walkout will affect Lufthansa passengers and cargo flights leaving German airports but will exclude flights to certain countries in the Middle East due to "the current situation" there. Due to the 'Iran conflict,' Lufthansa is currently not offering passenger flight to destinations like Tel Aviv or Dubai, or Abu Dhabi. The war in the region has created chaos, forcing airlines to cancel flights or take alternative routes. Lufthansa has announced that they are preparing a special flight schedule for the two-day strike. The schedule will be available by Wednesday at 2:00 pm (1300 GMT). The group's subsidiaries,?Discover Air and Lufthansa cityAirline?, will fly their regular schedule in?Germany and add additional flights when possible, they added. Thomas Seythal is reporting. Matthias Williams contributed additional reporting. Mark Potter (Editor)
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Dutch court lifts the cap on flights at Amsterdam Airport
The Dutch Supreme Court ruled on Wednesday that the government's?decision?to?limit _the number of flights?at Amsterdam's Schiphol Airport, one of Europe’s busiest hubs?was void. The court ruled that the decision made by 2024 to limit flights to 478 000 per year in order to "cut noise pollution" was not properly motivated. A spokesman said that the government was not able to immediately comment on the decision. Climate activists and residents living near the airport also called for more restrictive measures. The court ruled that the government's decision failed to?take into account the fact that different planes produce different noise levels, thus?setting an inappropriate general cap on the?number?of flights. The report also said that it was unclear whether the cap installed would actually lead to the "intended" reduction in noise pollution. The court allowed a reduction in nighttime flights because none of the parties had appealed this part of the decision of the government.
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Gasunie urges Dutch Government to Build Strategic Gas Reserve
Gasunie, the Dutch natural gas grid operator, urged on Wednesday that the government 'build a strategic?gas?reserve' to ensure that?the Netherlands is able to withstand a long-term disruption in supplies. Gasunie stated that the Netherlands is protected from short-term disruptions caused by cold weather but not long-term issues such as geopolitical tensions and sabotage. Hans Coenen, Gasunie's director, said that the current geopolitical environment requires a?realistic approach and preparations to the unexpected. Gas company has called for research into?the use as a reserve of the cushion gas? that is stored in large gas storages across the country. Cushion gas is stored permanently in natural gas storages for maintaining adequate pressure. The Netherlands, once a major gas supplier in Europe, has now become an importer of gas after shutting down its large Groningen gas field because of the earthquakes caused by gas extraction. The Netherlands is a major gas consumer. However, a growing part of the gas comes from the United States. In the form of liquid natural gas. Gasunie reported that the country has large underground gas storages. Approximately 85% of their capacity would be required to meet annual gas demand in normal circumstances. (Reporting by Bart Meijer. Mark Potter edited the article.
TSX Futures fall as markets focus on US inflation data and assess Mideast risk
Investors awaited key U.S. data on inflation due later in the day, as they viewed the latest developments of the Iran War.
As of 6:35 a.m., March futures for the?S&P/TSX 'composite index' had fallen 0.21%. ET, and futures for Wall Street’s main indexes fell as well.
After the U.S., Israel and Iran exchanged airstrikes across the Middle East?as crucial shipping lanes through Strait of Hormuz were blocked?fears of a long-term conflict continued to grow.
Toronto's benchmark indice?closed level on Tuesday. It is down over 3% from the levels before the conflict with Iran began.
Consumer prices in the U.S. are due to be released at 8:30 am ET. ET. It is expected to show that prices in February likely increased, before tensions in?Middle East escalated.
The oil prices rose the next day, after falling the previous session. Traders awaited the International Energy Agency (IEA)'s decision regarding plans to release reserves of crude oil that could counteract potential supply shocks. According to two sources, the oil release could be 400 million barrels.
Canadian energy stocks are the best performers this year despite the recent fluctuations in oil prices. Information technology is a laggard.
The focus would be on the shares of Canadian lender, goeasy. They fell more than 56% Tuesday after announcing an 'incremental charge off of C$178,000,000 ($131.16,000,000) against its C$5.5 Billion loan?book for the fourth quarter. Two brokerages have downgraded the rating of the stock while others have cut their price targets.
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(source: Reuters)