Qantas Airways, SAS, and Air New Zealand raised their airfares on Tuesday due to an unexpected increase in fuel costs caused by the Middle East war. New Zealand’s flag carrier has halted its financial outlook for 2026 because to uncertainties over jet fuel prices, which were previously at $85 to $90 per barrel before to US-Israeli strikes on Iran. Prices now range between $150 and $200 per barrel.
The battle delayed shipping across the world’s most crucial oil export route, causing oil prices to skyrocket, upending global travel, and generating fears of a deep travel downturn that may lead to widespread grounding of planes. SAS has issued a “temporary price adjustment” to ensure stable and reliable operations, citing significant increases.
Last year, the largest Scandinavian airline said that it had temporarily changed its fuel hedging strategy due to uncertain market conditions, and that it would not hedge its fuel consumption for the next 12 months. While numerous Asian and European airlines, like Lufthansa and Ryanair, have oil hedging in place, securing a part of their fuel supplies at fixed rates, Finnair cautioned that even the availability of fuel may be jeopardized if the crisis continues.
Also Read:
Musk’s SpaceX: Starship lands safely… then explodes
Fisherman swap petrol motors for electric engines
