by Lacey Pfalz
Last updated: 9:05 AM ET, Tue March 10, 2026
The continuation of the U.S.-Israeli war on Iran is now impacting airfare, with airlines around the world announcing higher prices and revising their financial predictions to align with the changes in the global economy.
According to Reuters, jet fuel prices have risen from $85-$90 per barrel to $150-$200 per barrel in days. Fuel typically accounts for up to a quarter of operating expenses for commercial airlines.
Globally, it’s not looking good, with one Deutsche Bank analyst telling Investor’s Business Daily that the high increase in jet fuel cost is an “existential threat” to the airline industry.
"The hostilities in the Middle East are driving oil prices and more specifically crack spreads to some of the highest levels seen in decades," said analyst Michael Linenberg. "Absent near-term relief, airlines around the world could be forced to ground 1,000s of aircraft while some of the industry's financially weakest carriers could halt operations."
Prices are skyrocketing as the global supply chain is disrupted due to military activity in major oil-producing nations and shipping lanes, including the Strait of Hormuz.
Air New Zealand announced “broad increases” to ticket prices, with a USD$6 increase in one-way economy fares. The price hikes are higher for short-haul international and long-haul flights. The airline also suspended its 2026 earnings forecast, unable to make a reasonable prediction with the current economic uncertainty.
Hong Kong Airlines announced it would raise fuel surcharges by up to 35.2 percent, making some flights increase from 284 Hong Kong dollars to 384 Hong Kong dollars.
Qantas Airways, the Australian air carrier, told reporters and customers it’s raising fares for international routes this week, and is considering adding more planes to fly European routes in the next few months.
SAS (Scandinavian Airlines) announced a temporary price adjustment, but has not mentioned how much airfare has increased.
Vietnam Airlines requested government assistance to remove the country’s environmental tax on jet fuel to ease operating costs, which have surged since the tax’s implementation.
US Airlines Respond
While airlines around the world are making changes and adjustments as needed to maintain profitability, airlines in the U.S. are doing likewise—or considering changes of their own.
American Airlines’ stock has dipped in recent days, and financial analysts expect a lower financial forecast than was previously predicted prior to the start of the new war, though it hasn’t yet announced an increase in airfare.
United Airlines’ CEO Scott Kirby told reporters that the rising fuel costs will have a “meaningful” impact on not only the airline’s financials this year, but will also translate to rising ticket prices—an action that “would probably start quick.”
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