Airlines Raise Fares as Iran War Fuels Jet Fuel Crisis

Global airlines are raising ticket prices and cutting routes as the Iran war disrupts jet fuel supplies, sending costs soaring. The crisis has intensified since U.S.-Israeli strikes on Iran began on February 28, with the Strait of Hormuz—through which 20% of global oil and gas pass—remaining blocked. Airlines including Virgin Atlantic, Qantas, and Lufthansa have introduced fuel surcharges, with Virgin adding £50 to economy tickets and £360 to business class fares. Lufthansa CEO Carsten Spohr warned that kerosene shortages will persist for the rest of the year, potentially forcing flight cancellations. Meanwhile, low-cost carriers like South Korea’s T’way Air are furloughing staff to cut costs. Experts predict a systemic fuel shortage in Europe within weeks, threatening flight disruptions during peak travel season. The conflict has already led to a 50% year-on-year surge in jet fuel futures prices, with airlines struggling to absorb the costs.