Airlines in Asia are raising fares and reducing flight operations as jet fuel prices surge following the conflict in the Middle East.
Jet fuel prices have surged sharply, with some costs doubling since the start of the year. In Europe, jet fuel reached around US$215 per barrel on Friday, according to Bloomberg, cited by Bangkok Post.
Adjusted prices and flight schedules
Several carriers have already adjusted pricing.
According to TTG Asia, Cathay Pacific will increase fuel surcharges by 34 per cent from April 1. Cebu Pacific has raised fares by 20 to 26 per cent, while Thai Airways has increased ticket prices by 10 to 15 per cent. Singapore Airlines is also raising fares.
Airlines are also adjusting operations as fuel supply tightens.
Vietnam Airlines has suspended some routes, while VietJet is reducing frequencies. Air New Zealand has cancelled more than 1,000 domestic flights, Bloomberg reports.
China has curbed fuel exports to secure domestic supply, while Vietnam has warned of possible shortages from early April, according to Bangkok Post.
Local transport affected
According to Travel and Tour World, rising fuel costs are also affecting local transport.
In Thailand, higher gasoline prices have led to fewer taxis at major transport hubs like Suvarnabhumi Airport, while operators in Vietnam have introduced fuel surcharges as fuel prices have risen by more than 30 percent.
Global supply pressure
The disruptions are linked to supply constraints affecting oil shipments through the Strait of Hormuz.
“If the Strait of Hormuz remains closed, there will be an acceleration of grounded planes,” Vikas Dwivedi, global energy strategist at Macquarie Group, said in an interview with Bloomberg.
