Iran conflict disrupts global aviation

Rising jet fuel prices amid the conflict surrounding Iran have sharply increased operating costs for global carriers, leading to higher fares, route cuts, and major schedule disruptions.

Leading airlines reported that the fuel price spike - driven by the military involvement of the US, Israel, and Iran - has severely hit their bottom lines, CE Report informs, citing the foreign media.

As a result, companies are being forced to raise tariffs and optimize their networks.

Delta Air Lines projects an additional $400 million in fuel expenses for March alone, with American Airlines expecting a similar $400 million hit in Q1. Scandinavian Airlines (SAS) reported flight reductions due to the "sudden and sharp" rise in fuel prices, stating that the entire European aviation system is under intense pressure.

The conflict has destabilized the global aviation grid. The closure of vast Middle Eastern airspace due to missile and drone threats has caused widespread cancellations and reroutings.

Since strikes on Iran began, fuel prices have doubled in Europe and surged by 80% in Asia. Fuel now accounts for up to 25% of airline operating expenses, second only to labor.

United Airlines noted fare hikes of 15–20% on numerous routes in just the past week. Thai Airways announced tariff increases of up to 15%, Cathay Pacific roughly doubled its fuel surcharges effective March 18, and Air France-KLM is adding around €50 to round-trip long-haul tickets.

Vietnamese authorities have warned of a potential decline in flight activity starting in April, following the suspension of fuel exports from China and Thailand. The United Arab Emirates has implemented temporary airspace closures, while drone incidents have disrupted operations at Dubai International Airport. At Frankfurt Airport, cancellations affected around 86,000 passengers in the first two weeks, with flight volumes to the Middle East dropping to roughly one-third of normal levels.

Routes with the highest fuel burn (transatlantic, transpacific, and Middle East–bound flights) are experiencing the most significant price jumps, often by tens or even hundreds of dollars per ticket when fuel surcharges are included.

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