Fuel can constitute up to a quarter of operating expenses, forcing airlines to raise fares and revise their financial outlooks.

15:40, Fri, May 1, 2026 Updated: 15:40, Fri, May 1, 2026

As the global aviation industry continues to face disruption amid the Middle East crisis, many airlines have already cancelled flights and increased the costs to make up for the lack of jet fuel. Tensions in the Strait of Hormuz disrupted key oil shipping routes, placing heavy financial pressure on airlines worldwide. Some carriers had begun adjusting ticket prices and reducing flights, with reports suggesting that stock levels could cover only a matter of weeks if supply disruptions continue.

Despite reassurances, airlines are already reacting. According to reports, Lufthansa has cancelled around 20,000 flights over the coming months as part of a cost-saving strategy linked to higher fuel prices. United Airlines has also warned that fares may need to rise by 20% to offset increased fuel costs, while several other international carriers have begun trimming schedules or revising profit forecasts.

Get the latest news from around the world and more Invalid email

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

Lufthansa is one of the airlines affected by the Iran war

Lufthansa is one of the airlines affected by the Iran war (Image: Getty)

In the UK, the impact on passengers has so far been limited. Airlines UK, representing the main carriers, said that "airlines continue to operate normally and are not experiencing issues with jet fuel supply". Britain has asked UK refineries to maximise jet fuel supply as it continues to plan for a range of contingencies to increase flexibility on supply, the government said.

British Airways, through its parent company IAG, said it is monitoring the situation closely and considering pricing adjustments to reflect higher fuel costs, but it is not introducing immediate fare increases. easyJet has warned that ticket prices are likely to rise later in the summer as existing fuel hedges expire, although it has also reassured customers that no extra surcharges will be added to existing bookings or package holidays.

Ryanair's CEO stated the airline is heavily hedged against fuel price spikes and therefore will not impose surcharges or fare increases, although he warned weaker competitors could struggle. TUI has also reassured customers that holiday prices are fixed, meaning no fuel surcharges will be passed on to those who have already booked, despite acknowledging pressure on the industry, the Independent reports.

Full list of airlines amending flights

  • Aegean Airlines – warning of financial impact from fuel costs and suspended Middle East flights
  • AirAsia X – cut 10% of flights and added ~20% fuel surcharge
  • Air Canada – cutting some NYC flights due to higher fuel costs
  • Air France-KLM – raising long-haul fares; KLM cancelling 150+ European flights and 80 return flights
  • Air India – changing fuel surcharge system to distance-based pricing
  • Air New Zealand – reducing flights and raising fares
  • Air Transat – cutting 6% of capacity and reducing Europe/Caribbean routes
  • Akasa Air – introduced fuel surcharges on flights
  • Alaska Airlines – raising baggage fees and cutting profitability outlook
  • American Airlines – increasing baggage fees and warning of higher fuel-driven costs
  • Asiana Airlines – cancelling 22 flights (Apr–Jul period)
  • British Airways (IAG) – considering price increases due to fuel costs
  • Cathay Pacific / HK Express – cutting flights and increasing fuel surcharges
  • Cebu Pacific (Cebu Air) – reviewing network and adjusting operations due to fuel pressure
  • China Eastern Airlines – raising domestic fuel surcharges
  • Delta Air Lines – cutting capacity and raising baggage fees
  • Frontier Airlines – reviewing financial forecast due to fuel costs
  • Greater Bay Airlines – increasing fuel surcharges on most routes
  • Hong Kong Airlines – raising fuel surcharges up to 35%
  • IndiGo – adding fuel surcharges across domestic and international routes
  • JetBlue – increasing baggage and service fees
  • Korean Air – entering cost-cutting emergency mode
  • Lufthansa Group – cancelling 20,000 flights and grounding aircraft to save fuel
  • Norse Atlantic – cancelling London–Los Angeles route
  • Pakistan International Airlines – raising fares ($20–$100 increase)
  • Qantas Airways – raising fuel cost forecasts and delaying financial returns
  • SAS (Scandinavian Airlines) – cancelling 1,000 flights due to fuel costs
  • Southwest Airlines – increasing baggage fees and lowering profit forecast
  • Spring Airlines – introducing fuel surcharges on domestic flights
  • SunExpress – adding €10 fuel surcharge per passenger
  • TAP Air Portugal – increasing fares to offset fuel costs
  • Thai Airways – raising fares by 10–15%
  • T'Way Air – furloughing staff and reducing operations
  • United Airlines – warning fares may rise 15–20% and increasing baggage fees
  • Vietnam Airlines – cancelling 23 flights per week and seeking tax relief
  • Vietjet – reducing flight frequency on selected routes
  • Virgin Atlantic – adding fuel surcharges to fares
  • Virgin Australia – increasing fares and absorbing higher fuel costs
  • Volotea – linking ticket prices directly to fuel costs (extra surcharges)
  • WestJet – cutting capacity and adding fuel surcharges