IATA in the news as jet fuel surges push up airline costs, fares, and disruption risk; global airline lobby group, founded 1945.
Geopolitical tensions and war in the Middle East have caused oil and jet fuel prices to spike, prompting airlines worldwide to increase ticket prices. Major carriers like Thai Airways and Hong Kong Airlines are raising fares, while some plan flight cancellations. The situation remains volatile as market and geopolitical factors continue to influence costs.
The ongoing war in the Middle East has caused a surge in oil and jet fuel prices, prompting airlines worldwide to raise fares. US carriers are integrating higher fuel costs into ticket prices, especially affecting long-haul flights, with some airlines already implementing increases due to geopolitical disruptions.
The Strait of Hormuz blockade caused by Iran's conflict with Israel has drastically reduced oil shipments, leading to fuel shortages in Europe, Asia, and the Americas. Airlines warn of potential jet fuel disruptions in May and June, with some countries already experiencing temporary fuel shortages and rising prices.
Europe has faced jet fuel supply disruptions since late February due to the Iran war closing the Strait of Hormuz. Airports warn of shortages within weeks, risking flight cancellations and fare hikes this summer. Airlines like Ryanair and easyJet have reported fuel cost surges and potential operational impacts, while the EU plans to boost refining capacity to mitigate the crisis.
Major US airlines are increasing baggage fees as jet fuel prices surge because of tensions in the Middle East disrupting oil shipping. American, Delta, United, and JetBlue are raising fees on checked bags, with Delta implementing its first hike in two years. Fuel costs are inflating airline operating expenses and will likely lead to higher fares.
Global airlines face higher jet fuel prices after the Iran conflict, with IATA predicting profits could halve to $23 billion in 2026 as costs rise and fares follow. European carriers warn of price increases and continued pressure this summer.
CEOs of United and Delta say consolidation is unlikely as fuel prices squeeze margins. United’s Scott Kirby dismisses a major merger with American, citing regulatory hurdles and management resistance. Delta’s Peter Carter aims to grow in the trans-Pacific and lead globally, while noting the industry remains focused on international expansion as fuel costs bite.
The IATA warns profits could be halved as jet-fuel costs rise; fuel at US$4.11 per gallon in April; global airlines project $23 billion net profit for 2026, down from earlier forecasts. Straits disruption keeps oil prices high and forces route reductions.