More airlines hike flight prices as Iran war continues to disrupt oil supply

The Guardian - World NewsEN 3 min read 100% complete by Luca IttimaniMarch 12, 2026 at 07:19 AM

AI Summary

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Several airlines, including Cathay Pacific, AirAsia, and Thai Airways, are raising airfares due to rising oil prices and restricted refinery access caused by the ongoing conflict involving Iran. This disruption has led to increased jet fuel costs, impacting airlines that haven't fully hedged their fuel expenses. Some airlines have locked in crude oil prices, but not the costs of refining it into jet fuel, leaving them exposed to price shocks. The conflict has also rerouted international travelers, increasing demand and prices on alternative routes, particularly those from Australia to Europe and India to the US. Analysts predict that long routes with limited carrier options will experience the most significant price hikes, with Australian connections to Europe, North America, and North Asia being particularly affected.

Key Entities & Roles

Key Player Opposition Context

Etihad 40% Emirates 40% Air New Zealand 50% Qantas 50% Ronald Lam ×260% Thai Airways ×260% United States 60% Israel 60% Middle East ×370% Iran 70% AirAsia ×270% Cathay Pacific ×380%

Keywords

air fares 100% oil prices 90% fuel surcharges 80% flight cancellations 70% middle east conflict 70% jet fuel 60% alternative routes 50% airline industry 50% travel disruptions 40%