SINGAPORE: Higher oil prices are causing airlines in the Asia-Pacific region to raise ticket fares. The price of jet fuel, which used to be between US$85 and US$90 last month, is now at US$150 to US$200 per barrel, or nearly double the price.
On Monday (March 9), the price of aviation fuel rose to US $173.91 (S$222) per barrel, AFP reported. Aviation fuel, which accounts for 20 to 30 per cent of the operating expenses of a carrier, is more expensive than crude oil, in large part due to the cost of refining.
The price of oil has risen steeply over the past week due to the conflict in the Middle East, which began when the United States and Israel began bombing Iran on Feb 28. Iran’s retaliatory strikes have affected several other countries in the region, including the United Arab Emirates, Qatar, Oman, and Saudi Arabia.
The conflict has affected the Strait of Hormuz, a chokepoint for 20 per cent of the world’s oil supply. However, as Asia obtains the majority of its oil needs from the Middle East, it has been affected more than other regions by the diminished supply due to the effective closure of the Strait.
While Singapore Airlines has not yet issued an official announcement that it will be raising ticket prices, several airlines in the Asia-Pacific region have already done so, according to a Bloomberg report.
- Air Asia said it will increase ticket prices as well as fuel surcharges, although it has not yet announced specifics.
- Air India will be increasing fuel surcharges in phases by as much as US$200 (S$255) for long-haul flights to Australia and North America.
- Air New Zealand announced on March 10 that it will raise fares for domestic and international trips. It also canceled more than 1,000 flights in the next two months.
- Cathay Pacific said earlier this week that fuel surcharges will increase this month.
- Hong Kong Airlines is set to introduce an increase of 35.2 per cent in fuel surcharges, costing the most for long-haul flights to Australia and North America.
- Qantas’ fares will go up by about 5 per cent, according to Bloomberg.
- Thai Airways may impose a 10 to 15 per cent increase in ticket prices.
- Malaysia Airlines announced on March 12 that it will also raise fuel surcharges in phases.
“Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40 percent of an airline’s operating costs, has seen significant price escalation due to supply interruptions,” said Air India as it announced higher air ticket prices
In other parts of the world, the Scandinavian airline SAS also announced a price increase for tickets, although it characterised it as “temporary.”
Meanwhile, carriers that bought jet fuel at a fixed price months in advance, such as Lufthansa and Air France, have so far been protected from the price increases, AFP added. /TISG
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