Asian airlines raise fares up to 35% as jet fuel prices double to $173 per barrel

Quick summary

Jet fuel prices have doubled to US$173.91 per barrel as of March 9, 2026, driven by Middle East conflict disrupting oil supply through the Strait of Hormuz. Qantas raised fares 5%, Air New Zealand added NZ$90 to long-haul tickets, Hong Kong Airlines imposed a 35.2% fuel surcharge increase effective March 12, and Air India is phasing in surcharges up to US$200 on Australia and North America routes — with more carriers announcing hikes through March.

Asian carriers hedge less fuel than European and US airlines, leaving them exposed to spot price volatility. Some spot economy fares from Asia to Europe have spiked 900% in the past week, though scheduled service pricing remains more stable.

Your next flight to Asia just got more expensive — and the increases are landing now, not later.

Jet fuel costs have surged from US$85–90 per barrel in February to US$173.91 on March 9, nearly doubling in two weeks as Middle East conflict disrupts oil flows through the Strait of Hormuz. That chokepoint handles 20% of global oil supply, and Asia sources most of its fuel from the region — meaning carriers here absorb the shock faster and harder than airlines elsewhere.

Qantas, Air New Zealand, Cathay Pacific, Hong Kong Airlines, Air India, Thai Airways, and Malaysia Airlines have all announced fare or surcharge increases effective immediately or phased through March. If you’re booking travel in the next 60 days, the window to lock in lower rates is closing.

Which carriers raised fares and by how much

Qantas increased base fares by approximately 5% across its network as of March 10. Air New Zealand added NZ$10 to domestic one-way economy tickets, NZ$20 to short-haul international, and NZ$90 to long-haul routes — effective the same day. Hong Kong Airlines raised fuel surcharges by 35.2% starting March 12, with the highest increases on flights to the Maldives, Bangladesh, and Nepal at HK$384 one-way.

Air India is phasing in fuel surcharge increases of up to US$200 on long-haul flights to Australia and North America, with Indian carriers collectively hiking long-haul prices by 15% overall. Cathay Pacific held its fuel surcharge flat at US$72.90 one-way to Europe and North America in January but confirmed increases this month — the airline reviews surcharges monthly based on spot fuel prices. Thai Airways indicated a 10–15% fare increase is under consideration, while Malaysia Airlines announced phased surcharge hikes on March 12.

The increases reflect fuel’s 20–40% share of airline operating costs — a proportion that climbs when prices spike. Aviation turbine fuel rose to US$173.91 per barrel on March 9, more than double the US$85–90 range carriers paid in February. Vietnam Airlines reported operating costs up 60–70% due to fuel alone.

Why Asian carriers are more exposed than European and US airlines

Asian carriers hedge less fuel than their European and US counterparts, leaving them vulnerable to spot price volatility. When jet fuel doubles in two weeks, airlines with minimal hedging pass costs directly to passengers through monthly or quarterly surcharge adjustments — exactly what Cathay Pacific, Hong Kong Airlines, and Air India are doing now.

European carriers like Lufthansa and Air France locked in fuel at fixed prices months in advance, insulating them from the March spike. Asian carriers, by contrast, buy more fuel on the spot market — a strategy that works when prices are stable or falling but exposes them when supply shocks hit. Vietnam Airlines‘ 60–70% operating cost increase illustrates the scale of that exposure.

Some carriers are now considering grounding aircraft if fuel costs remain elevated. Low-cost fleets with thin margins become uneconomical when fuel exceeds affordability thresholds — a contingency that hasn’t been necessary since the 2022 Russia-Ukraine war drove Asia-Europe fares up 30–60%.

What to do if you’re booking Asia-Pacific travel

Fuel surcharges are updating now, and the next round of increases will reflect April spot prices — which remain unpredictable while the Middle East conflict continues.

• Book within 7 days if traveling before May. Fares booked today lock in current surcharges; waiting risks catching the next monthly adjustment cycle.
• Check airline fuel surcharge pages before finalizing — Cathay Pacific, Qantas, and Singapore Airlines publish current rates at cathaypacific.com/fuelsurcharge and qantas.com/au/en/flying-with-qantas/fees-and-charges.html. Surcharges vary by route and cabin class.
• Filter for flexible fare rules on Google Flights or Kayak — “no change fees” options let you rebook if prices drop or if further disruptions emerge.
• Consider points redemptions if you hold airline miles. Award charts lag fuel surcharge updates by weeks, creating a brief window where cash fares rise but award pricing hasn’t adjusted yet.
• Monitor IATA’s fuel price index weekly at iata.org/en/publications/economics/fuel-monitor/ — it signals when surcharges will update next.

Watch: Singapore Airlines has not yet announced fare increases despite operating the same fuel environment as regional peers. An announcement in the next 7–10 days would confirm the surcharge cycle is industry-wide, not carrier-specific.

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