Cathay Pacific Airways announced on 12 March that it will raise fuel surcharges on most routes from 18 March. The carrier said that the price of jet fuel has “approximately doubled” amid the war on Iran.
For short-haul flights, the fuel surcharge will increase to HK$290 (US$37), up from HK$142 (US$18). The surcharge for medium-haul flights will rise to HK$541 (US$69) from HK$264 (US$33), while that for long-haul flights will more than double from HK$569 (US$73) to HK$1,164 (US$149)..
Air New Zealand cuts 1,100 flights
Reuters reported that Air New Zealand will slash five percent of its flights, or around 1,100 services, through early May as the Iran war sends jet fuel prices surging and disrupts travel even in rural areas thousands of miles from the conflict zone. The airline said that it would implement broad increases to ticket prices.
Air New Zealand CEO Nikhil Ravishankar also said that about 44,000 customers of the 1.9 million flying through early May would have to be reaccommodated due to domestic and international flight cuts.
Airports servicing areas such as popular New Zealand winemaking region Marlborough and west coast city New Plymouth will see a reduction in services over the coming weeks. Fewer long-haul flights would be cut, as its U.S. routes have become a more popular stopover on the way to Europe since widespread Middle Eastern airspace closures.
The carrier has also implemented immediate fare increases, adding NZ$10 (US$5.90) to domestic tickets, NZ$20 (US$11.80) on short-haul international service and up to NZ$90 (US$52) for long haul services.
Qantas
Qantas said that it would hike fares on international routes for this week. As travellers avoid Middle Eastern transit hubs, Qantas reported that its European flights are reaching over 90 per cent capacity. Qantas has flagged a general fare increase of approximately five per cent, warning that some routes may become uneconomical if prices stay at US$200 per barrel.
Its Perth to London flights will now stop in Singapore for refuelling in order to avoid flying over Middle East airspace.
Air India
Air India is levying a new fuel surcharge on domestic and international flight tickets. The surcharge will be introduced in three phases, beginning with domestic and several international routes.
Air India said the step is necessary to offset the sharp rise in aviation turbine fuel (ATF) costs triggered by geopolitical tensions. ATF is one of the largest expenses for airlines and typically accounts for around 40 per cent of operating costs.
Starting 12 March 12, a new US$4.30 fee applies to all domestic routes, while surcharges to South-east Asia will rise from US$40 and US$60. For Africa, an increase from 60 US$60 to US$90. For West Asia/Middle East, an additional US$10 per ticket will be charged.
A second phase on 18 March will see long haul surcharges jump to US$125 for Europe and US$200 for North America and Australia. A third phase, which will cover Far East destinations such as Hong Kong, Japan and South Korea, will be announced later.
Other airlines
Channel NewsAsia also provided an update on other airlines which are raising fares.
Thai Airways said that it would raise fares by 10 per cent to 15 per cent.
Hong Kong Airlines said that it would raise fuel surcharges by up to 35.2 per cent from 12 March
Vietnam said its domestic airlines could face fuel shortages as soon as next month. Vietnam Airlines and VietJet have seen operating costs jump 60 to 70 per cent, leading the former to petition the government for waivers off environment taxes on jet fuel to remain viable.
Some European airlines, however, will be able to withstand the shock in the short term as many purchased fuel at fixed prices for several months in advance.
Lufthansa said that it had bought 80 per cent of its annual fuel needs at a fixed price.
Air France-KLM said that it had secured a fixed price for 70 per cent of its fuel for the first two quarters of the year and 60 per cent for the quarter following.
Ryanair is also well protected because of a similar strategy, according to a report by Bernstein analysts.
But SAS, the largest Scandinavian airline, announced a “temporary” increase in its fares owing to the spike in fuel costs.
Korean Air has entered discussions regarding significant increases to fuel surcharges for April. Surcharges for long haul routes like Incheon–New York could triple, potentially reaching 325,000 won (US$220) per ticket.
