Chaos in the Global Aviation Sector
Rising aircraft fuel prices have led to flight cancellations and increased fees by airlines.
Translated by Qiyas from النهار — Original source
The global aviation industry is facing one of the most severe waves of disruption in its modern history, driven by a sharp spike in jet fuel prices resulting from a global shortage caused by the war in the Middle East, particularly the US-Israeli escalation with Iran. Jet fuel prices surged from a range of $85 to $90 per barrel to shocking levels between $150 and $200 within weeks, dealing a harsh financial blow to airlines, as fuel accounts for up to a quarter of operating costs. This surge quickly impacted fares and operational plans, with airlines beginning to raise ticket prices, impose fuel surcharges, reduce capacity, and even cancel thousands of flights, as an increasing number of carriers withdrew their financial forecasts, according to The Independent, as reported by Arabi Business.
Lufthansa Group was among the most affected, announcing the cancellation of 20,000 flights over six months to save approximately 40,000 tons of jet fuel after prices doubled. The group reduced its capacity by 1% during the summer, permanently grounded 27 Lufthansa CityLine aircraft, and canceled entire routes from Frankfurt to cities in Poland and Norway. In a similar vein, Air France-KLM announced its intention to raise long-haul ticket prices by approximately €50 per round trip, while canceling 160 flights within Europe. Scandinavian Airlines (SAS) canceled around 1,000 flights in April, warning that high fuel prices represent a direct blow to the industry, even as costs are passed on to passengers. EasyJet warned of larger-than-expected half-year losses due to an additional £25 million in fuel costs in March, while British Airways stated that its fuel hedging prevented immediate fare hikes. TUI, Europe’s largest tour operator, lowered its profit forecasts and suspended revenue guidance, with its share price falling by approximately 25% over three months.
Asia: In Asia, Cathay Pacific canceled around 2% of its flights, while HK Express reduced its capacity by approximately 6% and increased fuel surcharges by 34%. Singapore Airlines did not mention entering a “state of emergency,” unlike Korean Air. Asiana Airlines announced the cancellation of 22 flights between April and July. In India, IndiGo, Air India, and Akasa Air imposed new fuel surcharges, restructuring fees based on distance. China Eastern and Spring Airlines increased fees on domestic flights, while Vietnam Airlines reduced its weekly flights and requested government intervention to cancel an environmental tax on fuel.
The Americas: In the United States and Canada, airlines shifted toward raising service fees rather than relying on ticket prices. American Airlines, Alaska Airlines, United Airlines, and Delta Air Lines all increased baggage fees, reduced capacity, or withdrew profit forecasts. United stated it is preparing for oil prices to remain above $100 through the end of 2027. Spirit Airlines requested emergency funding worth hundreds of millions to avoid liquidation, while WestJet reduced capacity, imposed additional fuel surcharges, and Air Canada announced a reduction in the number of daily flights to New York.
Africa: Nigerian airlines warned of halting flights entirely due to “unsustainable” prices, before temporarily suspending the decision following government intervention. In the Middle East, SunExpress announced a temporary fuel surcharge, and Turkish Airlines decided not to distribute 2025 dividends to maintain liquidity.
However, the greatest pressure was felt in Europe, where around 75% of jet fuel comes from the Middle East via the Strait of Hormuz. This prompted the European Commission to propose the “AccelerateEU” package to coordinate fuel distribution among countries and avoid shortages during the summer, amid official warnings of the worst-case scenario even under the best conditions. What is unfolding reflects how the fuel crisis has become an existential test for some airlines, while others strive to survive through financial hedging or by passing costs on to travelers. As strategies vary from canceling flights to imposing baggage and fuel surcharges, the global aviation industry appears to have entered a phase of comprehensive repricing, with passengers ultimately footing the bill.
