KUALA LUMPUR, Oct 20 (Bernama) — AirAsia Group Bhd shares dipped 3.29 per cent amid the airline’s ongoing financial woes following the spike in jet fuel prices due to the West Asia conflict. At 3.51 PM, AirAsia trimmed 1.5 sen to 44 sen, with 11.08 million shares traded. The group is actively seeking fresh funding to counter severe headwinds from surging jet fuel prices and foreign exchange losses and was reported to have the backing of the Finance Ministry on its fundraising effort. In September, AirAsia Group Bhd co-founder and adviser Tan Sri Tony Fernandes said the group has not […]

Turkish budget carrier Pegasus Airlines (Istanbul/PGSUS) has so far refrained from passing on skyrocketing jet fuel costs to passengers, its chairman Mehmet Nane told BloombergHT on September 2. The Iran War and soaring global refining margins are taking a heavy toll on regional aviation. Speaking on the sidelines of the Airports Council International Airport Experience Summit, Nane also disclosed that crude oil prices rose around 30% in 1H while jet fuel expenditure surged by roughly 70%. The disparity underscores a widening "crack margin", the premium refiners charge to turn raw crude into aviation fuel. Nane warned that the spread hits airlines with a doubling of the operational intensity of baseline oil inflation. "The effect of the Middle East conflict hits us on multiple fronts," Nane said, adding: "One is the rise in oil prices... and when it comes to aviation, that impact is doubled because of the conversion ratio from crude oil to jet fuel." Despite a 26% y/y increase in 1H revenues, Pegasus has opted to absorb the brunt of the cost spike rather than risk dampening passenger demand with higher fare surcharges. "Fuel costs have not yet been reflected in ticket prices," Nane said, adding that management was relying on dynamic monthly budgeting and a substantial hedging strategy to navigate the turbulence. Pegasus has hedged about 62% of its fuel exposure, well above the global airline industry average of less than 50%. While this derivative buffer has shielded the airline from the worst of the volatility, Nane conceded that the rapid rise in jet fuel prices continues to exert severe downward pressure on margins. The geopolitical friction both south and north of Turkey’s borders has created secondary headwinds for the country's aviation and tourism sectors. Positioned as a critical crossroads linking Europe, the Middle East and Asia, Turkish carriers rely heavily on regional transit and inbound leisure traffic. According to Nane, tourist arrivals from key markets such as Iran have fallen short of initial forecasts as regional security fears weigh on consumer travel sentiment. "Looking at it from this perspective, because our country sits at a juncture connecting the world, we have experienced the negative impacts of this war through rising fuel prices, elevated costs and a drop in tourist arrivals from the regions," he said. Airlines across Europe and the Middle East are watching the refined fuel markets closely. If jet fuel prices remain elevated, low-cost carriers, which operate on razor-thin operating margins, will eventually be forced to raise base fares or reintroduce aggressive fuel surcharges before the winter travel season. Separately, on September 2, Pegasus said that it had cancelled Russia flights for "technical and operational" reasons. Earlier in the day, Ukraine’s president, Volodymyr Zelenskiy, declared that due to expanding warfare Russia’s airspace was becoming unsafe for commercial airlines.

This is the second consecutive monthly increase in jet fuel prices, adding to cost pressures for domestic airlines and potentially putting upward pressure on airfares.

IATA's Willie Walsh warned on Apr 8, 2026 that sustained jet fuel premiums (crack spreads higher QoQ in Q1 2026) make higher ticket prices "inevitable," pressuring airline margins.

Lower jet fuel prices and weaker seasonal demand pushed global air freight rates down for a third week, though rates remained above last year's levels.

Asia-linked trade supported April air cargo growth, while Gulf hub disruption, lower capacity and rising fuel costs reshaped key freight corridors.

Airlines have removed nearly two million seats from flights over the month, data from Cirium shows.

Jet fuel prices have doubled amid Middle East conflict, forcing airlines to raise fares and sparking travel cancellations among Australians planning overseas trips.

KUALA LUMPUR (March 10): Airlines in Asia are reviewing fares and operational plans as rising jet fuel prices linked to escalating conflict in West Asia begin to ripple across the aviation industry, with some carriers already introducing fuel surcharge adjustments. In Malaysia, Batik Air Malaysia has confirmed to Bernama that it recently issued a notice to its travel trade partners on adjustments to fuel surcharges for both domestic and international routes, reflecting mounting cost pressures faced by airlines. This confirmation follows a post circulating on the X platform by a user, Pemburu Tiket Murah, which stated that several major airlines […]

Jet fuel prices in the United States have more than doubled in recent weeks, rising from approximately $2.17 per gallon to $4.56 per gallon by March 20, 2026, according to the Argus U.S. Jet Fuel Index. This sharp increase is driven by escalating tensions in the Middle East, particularly around the Strait of Hormuz, a critical chokepoint that handles about 20 million barrels of oil per day and significant volumes of jet fuel. The Middle East supplies roughly 17% of global jet fuel consumption, making the market highly sensitive to disruptions. Major U.S. airlines are already feeling the impact. United Airlines CEO Scott Kirby announced plans to reduce about 5% of scheduled flights in the near term and suspend select international routes, including those to Israel and Dubai. The carrier warned that sustained high prices could add $11 billion in annual expenses. Delta Air Lines CEO Ed Bastian reported an additional $400 million in fuel costs for March alone, while American Airlines projected a similar $400 million hit in the first quarter. Airlines are responding by raising ticket prices and adjusting schedules. Internationally, carriers such as Air France-KLM, Lufthansa, Cathay Pacific, SAS, Qantas, and Thai Airways are implementing fare increases, fuel surcharges, and flight cancellations, with SAS planning to cut about 1,000 flights in April. European airline executives have cautioned that a prolonged conflict could lead to fuel shortages and further strain supplies. Jet fuel's volatility stems from thin inventories, specialized storage requirements, and limited spot trading. The slowdown in tanker traffic through the Strait of Hormuz has amplified these pressures. While airlines work to pass on higher costs to consumers, the situation risks broader economic ripple effects on air travel affordability and availability.

Pakistan International Airlines cuts flights and discounts as jet fuel prices surge, impacting routes and finances.

Whether Republicans like it or not, the war with Iran pushed fuel prices higher, and this proved to be the death blow for the company.

Spirit Airlines has announced it is going out of business after 34 years, citing the rising cost of jet fuel since the start of the Iran war.

Spirit employs more than 15,000 personnel, many of whom will be out of work if the airline liquidates its holdings to pay creditors.

Rising jet fuel prices are squeezing US airlines, forcing fare hikes, route cuts and major cost reductions.

Stephen Colbert is writing a new Lord of the Rings movie, and 12 tons of KitKat bars shaped like Formula 1 race cars were stolen

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