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Jet Fuel Crunch Forces Airlines To Cut Flights And Hike Fares Worldwide Amid Iran War Disruption

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Originally posted by: IB Times

Source: IB Times

Major airlines across the world are cutting flights and adjusting schedules as the ongoing war triggered by strikes involving the U.S., Israel and Iran continues to impact global jet fuel supply and pricing.

According to a report by CNBC, the conflict has disrupted oil shipments and driven jet fuel costs sharply higher, forcing carriers to revise operations and routes.

European and Asian operators have been among the hardest hit. A Business Insider report detailed how the jet fuel shortage and price surge have prompted planned flight reductions from carriers such as Ryanair and Scandinavian Airlines, forcing cancelations on hundreds of mostly short‑haul services. In Asia, airlines including Vietnam Airlines, Vietjet Air and AirAsia have already begun trimming capacity in response to ballooning fuel costs, with some carriers more than doubling ticket prices to help absorb the impact.

Echoing these developments, Economic Times reported that Air New Zealand, one of the region’s largest long‑haul carriers, is planning to cut flights and raise fares for travel in May and June as jet fuel prices remain more than twice their typical levels. The airline is notifying affected customers this week and noted that disruptions in Middle Eastern aviation hubs have added to its operational challenges.

These service cuts are not limited to the mentioned region. Airlines in the Middle East and Europe, where much traffic passes through war‑affected airspace, have also scaled back operations or added detours. The closure of the Strait of Hormuz, a critical shipping chokepoint for oil and fuel supplies, has reduced physical availability of jet fuel in key importing regions and led carriers to carry extra fuel or add refueling stops, measures that further constrain capacity and raise costs, said a report by Malaymail.

The squeeze on fuel is particularly acute for airlines without significant hedging protection. Industry analysis shows many carriers had reduced or eliminated fuel price hedges before the war, leaving them exposed to volatile oil markets and forcing more dramatic operational shifts. While some airlines have tried to cushion passengers from sudden fare jumps, others are passing most of the fuel cost increases directly to consumers through higher ticket prices and surcharges.

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