Air India and Air New Zealand have indicated that they will reduce flights and raise tickets as jet fuel prices rise due to the US-Israeli war with Iran. Many airlines throughout the world have had to adopt emergency measures to combat growing fuel costs, which typically account for 20-40% of their operational expenses.
Last week, the benchmark European jet fuel price reached an all-time high of $1,838 (£1,387) per tonne, up from $831 before the conflict began. Analysts warn that as the violence continues, travelers should expect higher ticket prices and more flight cancellations.
The Gulf is a key supplier of aviation fuel, accounting for roughly half of Europe’s imports. The majority of it passes through the Strait of Hormuz, which Iran effectively closed in response to US and Israeli attacks.
The rise in jet fuel prices reflects Middle Eastern refineries’ importance in supply. According to Energy Intelligence, the Al-Zour refinery in Kuwait alone accounts for around 10% of European jet fuel imports. Air New Zealand’s cancellations are expected to affect routes in and out of Auckland, Wellington, and Christchurch, with flights to minor airports remaining unaffected.
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