Main points
- Some airlines have raised airfares due to rising fuel costs caused by the conflict in the Middle East.
- Jet fuel prices have risen to $150-$200 per barrel, affecting the cost of air travel, although some companies have oil price hedges.
Airline ticket prices have skyrocketed due to the war in Iran / Collage by Channel 24, photo by Getty Images
Some airlines have announced price hikes, citing soaring fuel costs caused by the conflict in the Middle East. Many have already lost billions in flight cancellations and falling shares.
Which airlines have raised ticket prices?
Jet fuel prices, which were around $85-90 per barrel before the US-Israeli strikes on Iran, have risen to $150-200 per barrel in recent days. This is making air travel more expensive, writes Reuters.
While several Asian and European airlines, including Lufthansa and Ryanair, have oil price hedges, securing part of their fuel supplies at fixed prices, Finnair warned that even fuel availability could be at risk if the conflict drags on.
A prolonged crisis could affect not only the price of fuel but also its availability, at least temporarily,
– said a Finnair spokesperson.
What is known about other airlines:
- Qantas Airways said it is not only raising international fares but is also considering rerouting flights to Europe as airlines and passengers try to avoid flying over volatile Middle Eastern airspace.
- Hong Kong's Cathay Pacific has announced additional flights to London and Zurich in March.
- Air New Zealand has already increased its economy fares, and the company has warned that further changes are possible if fuel prices remain high.
- Hong Kong Airlines said it would raise fuel surcharges to 35.2%. Flights between Hong Kong and the Maldives, Bangladesh and Nepal will see the biggest increases.
- Meanwhile, Vietnam Airlines has asked the government to scrap the environmental tax on jet fuel to reduce costs. The Vietnamese government estimates that airlines' operating costs have increased by 60-70% due to the increase in fuel prices.
Will gasoline prices increase in Ukraine?
Rumors have spread on social networks about a possible increase in gasoline prices up to 100-150 hryvnias per liter in the future. The information was commented on by Andriy Gerus, Chairman of the Verkhovna Rada Committee on Energy and Housing and Communal Services, during a telethon, Channel 24 reports.
Gerus noted that when such wars start in the world, it is very difficult to predict anything. However, he does not have predictions about the price of 100-150 hryvnias per liter for fuel.
I think the situation is complicated, it may even get more complicated, but I still don't think it would come to this (prices of 100-150 hryvnias per liter of fuel).
– he remarked.
In addition, the release of strategic and minimum reserves of oil and petroleum products can stabilize the market, for which appropriate decisions must be made.
What is happening to global fuel prices due to the US-Iran conflict?
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Croatia and Hungary are already trying to rein in high gasoline prices, becoming the first EU countries to impose fuel price caps. Meanwhile, in Germany, Finance Minister Lars Klingbeil has proposed allowing gas stations to raise prices only once a day.
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Vietnam has urged citizens to work remotely to reduce fuel consumption due to price hikes caused by the Iran war. Fuel prices in Vietnam have risen sharply: gasoline by 32%, diesel by 56%, kerosene by 80%, prompting the government to take measures, including eliminating import duties on fuel.