Airlines Raise Ticket Prices as Middle East Conflict Drives Fuel Costs Higher

Several global airlines have begun increasing ticket prices as rising fuel costs linked to the escalating conflict in the Middle East put pressure on the aviation industry.

Air New Zealand announced Tuesday that it has raised fares to offset the sharp rise in jet fuel prices, which surged from about $85–$90 per barrel before the conflict to between $150 and $200 per barrel in recent days. 

The airline increased domestic economy fares by NZ$10, short-haul international fares by NZ$20, and long-haul tickets by NZ$90. The company also suspended its financial outlook for 2026 due to ongoing uncertainty.

The price hikes come as the conflict involving the United States, Israel, and Iran pushes global oil prices higher, disrupting travel and raising fears of a major slowdown in the aviation sector.

Other airlines are taking similar steps. Qantas confirmed it will raise international ticket prices this week due to increased fuel costs, while Scandinavian Airlines said it has temporarily adjusted fares to cope with rising jet fuel expenses.

Air travel between Asia and Europe has already become more expensive due to airspace closures and capacity restrictions as airlines reroute flights to avoid the conflict zone. Despite these challenges, demand remains strong on some routes. 

Qantas reported that bookings for flights to Europe in March have exceeded 90%, significantly higher than normal levels.

The fuel surge is also affecting airlines in Asia. Vietnam Airlines has asked authorities to remove environmental taxes on jet fuel after operating costs increased by 60–70%.

Industry analysts warn that prolonged high oil prices and restricted airspace could push ticket prices even higher and disrupt global travel during the upcoming summer peak season.

Tourism sectors in parts of Asia are already bracing for losses if the conflict continues for several weeks.