Airline Fares Rise as Iran-US War Enters Third Week

The US-Iran war is driving up airline ticket prices, with at least three major carriers announcing fare hikes or flight cancellations as fuel costs spike from ongoing attacks on oil tankers in the Strait of Hormuz.

The conflict, now in its third week, has sent crude oil prices to levels not seen in years. Airlines, which count jet fuel as their single largest operating expense, are passing those costs directly to passengers.

Thai Airways said it is raising ticket prices by 10 to 15 percent, citing overwhelming demand and rising fuel costs. The airline also warned that its European routes and other key destinations will face severe capacity limits for the foreseeable future.

Hong Kong's Cathay Pacific announced increased fuel surcharges for travelers, saying fuel costs have nearly doubled since the war began. The airline did not specify by how much surcharges would increase but indicated the adjustment would apply across multiple routes.

Air New Zealand confirmed it will cancel approximately 1,100 flights through May 6, affecting around 44,000 passengers. CEO Nikhil Ravishankar told Radio New Zealand the fuel price situation is unprecedented, though he noted that managing fuel spikes is familiar territory for the industry. The cancellations represent one of the largest single capacity cuts by any carrier since the conflict began.

The three airlines that have gone public with price changes are unlikely to be the last. Carriers across Asia, Europe, and the Middle East are facing the same fuel cost pressures, and industry observers expect a broader wave of fare adjustments in the coming days as airlines report their operational numbers for the week.

What Rising Airline Fares Mean for Travelers

For passengers, especially those flying long-haul routes through or near the Middle East corridor, the impact is already direct. Higher fuel surcharges push up base ticket prices, and capacity cuts on affected routes mean fewer available seats, which drives prices up further through basic supply and demand.

Travel industry analysts say passengers booking flights over the next several weeks should expect significantly higher fares than they would have paid before the conflict began. Those with flexible travel dates are being advised to monitor prices closely, as the situation remains fluid.

Airlines rerouting flights away from Middle Eastern airspace are also absorbing longer flight times and additional fuel burn, compounding the cost pressure. Routes that previously transited through Gulf airspace are being redirected over Central Asia or Africa, adding hours to some journeys and further straining airline economics.

With no ceasefire talks publicly underway and oil markets remaining volatile, the aviation sector is bracing for a prolonged period of elevated costs. How much of that burden ultimately lands on passengers will depend on how long the conflict continues.

Stay tuned for more updates!