"Jet fuel prices, which were around $85 to $90 per barrel before the attack on Iran, have soared to between $150 and $200, New Zealand's flag carrier said on Tuesday as it suspended its financial outlook for 2026 due to uncertainty over the conflict."
"Increases of this magnitude make it necessary to react in order to maintain stable and reliable operations, an SAS spokesperson said in a statement to Reuters, adding it had implemented a temporary price adjustment."
"A prolonged crisis could affect not only the price of fuel, but also its availability, at least temporarily, a Finnair spokesperson said, adding that this was not happening yet."
A geopolitical conflict has triggered a dramatic surge in jet fuel prices, rising from $85-90 per barrel to $150-200, disrupting global aviation. Major airlines including Qantas Airways, SAS, and Air New Zealand have announced significant airfare increases and suspended financial outlooks due to uncertainty. The conflict has disrupted shipping through critical oil export routes and raised concerns about fuel availability. Airlines employ different strategies to manage costs: some have implemented temporary price adjustments, while others maintain fuel hedging policies that lock in prices. Airlines with substantial hedging, like Finnair with over 80 percent of first-quarter fuel hedged, face less immediate pressure but warn of potential supply risks if the conflict persists. Kuwait's reduced jet fuel exports to northwest Europe compound supply concerns, while airspace disruptions in the Middle East add operational complications.
Read at www.aljazeera.com
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