Fuel Surge Drives Airline Cuts, Fare Hikes

The prolonged US-Iran conflict and related regional instability have sharply disrupted Middle East-Europe aviation, with Eurocontrol reporting 59% fewer flights and extensive rerouting around closed airspace. Longer routes and reduced access to key fuel corridors have increased airlines’ fuel and operating costs, while crude oil and jet-fuel prices have risen substantially. Airlines including Ryanair and Qantas are responding by reviewing capacity, routes and fares, using fuel hedging, and imposing surcharges or passing higher costs to passengers. Although travel demand remains resilient outside the most affected regions, the fuel shock, weaker consumer confidence and risks of inflation and slower economic growth are squeezing airline profit margins. Industry analysts expect elevated costs and operational disruptions to persist as long as hostilities continue, with possible localized fuel shortages adding to pressure on airfares.