APAC Airlines Raise Surcharges, Consolidate Flights on Surging Jet Fuel Prices — OPIS

Many Asia-Pacific airlines have announced higher fuel surcharges, with a few cancelling upcoming flights or focusing on certain routes, in response to skyrocketing jet fuel prices since the start of the Middle East conflict.

Air New Zealand was one of the first to highlight the impact of rising jet fuel prices on its business; "Almost half of our costs are fuel, from 25% (previously) so it's doubled," said Chief Executive Officer Nikhil Ravishankar on Thursday in an interview with NZ Herald.

He said that the airline cannot pass on all of the cost increases to its customers, so in addition to raising fuel surcharges, it will also consolidate off-peak flights for certain routes. This has resulted in an immediate cancellation of around 1,100 flights till May 4.

Cathay Pacific updated its fuel surcharges on March 12, which will apply for tickets bought starting March 18, to around double the present surcharges. Only flights originating from Japan are exempt from the surcharge hike.

Australian airline Qantas said it will raise international fares due to volatility in jet fuel prices while also looking to redeploy its capacity into Europe, which has seen increased demand, according to local media reports.

Air India announced on March 10 that it would impose a phased increase in fuel surcharges on its domestic and international routes, with the first phase implemented on new bookings made from March 12 to March 17, and the second phase to be implemented from March 18 onwards. A third phase for flights to Northeast Asia will be announced at a later date.

The Malaysia Aviation Group said its airlines have been reviewing airfares and fuel surcharges, in a statement to local media.

Firefly, a unit of MAG, will adopt a similar phased approach to Air India, and implement the first phase of higher surcharges on all bookings except those made in the Philippines, effective March 11 to March 24. The Philippines will be included in the second phase, starting March 25.

The Civil Aviation Authority of Vietnam said that Vietnamese airlines are reviewing flight schedules starting in April to reduce jet fuel consumption in response to higher jet fuel prices and possibly fewer imports.

Physical jet fuel prices in the key Singapore trading hub surged to a record high of $228.95/bbl FOB Singapore on March 4, from $93.48/bbl FOB Singapore on Feb. 27, according to OPIS data.

Prices continue to be highly volatile, falling to $143.55/bbl FOB Singapore on March 10 before rebounding to $209.16/bbl FOB Singapore on March 12.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Kite Chong, kchong@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com

(END) Dow Jones Newswires

March 13, 2026 05:37 ET (09:37 GMT)