Due to fuel shortages: airlines are forced to raise fares and cut flights
28 April 11:17
Very soon, flights may cost significantly more than passengers had anticipated. One of the largest U.S. airlines, United Airlines, is raising ticket prices by approximately 15–20%, reports "Komersant Ukrainian", citing Business Insider.
This was announced by the company’s CEO, Scott Kirby, and the reason is quite prosaic—fuel. More precisely, its cost and scarcity. Aviation fuel is the second-largest expense for airlines (the first being employee salaries), and right now it has become literally golden. According to Kirby, fuel prices have doubled since the start of the conflict with Iran. And, as is usually the case, passengers will ultimately have to foot the bill.
“At the beginning of the year, the company had already partially passed these costs on to customers. In the first quarter, they managed to offset approximately 40–50% of the fuel price increase thanks to high demand for flights,” the report states.
But in addition to raising fares, the carrier has decided to cut back on the number of flights. After all, there is a significant shortage in the jet fuel market.
Delta Air Lines
This American airline’s fuel costs rose by $332 million compared to last year. However, the company has a certain advantage due to its ownership of an oil refinery in Pennsylvania, which will help save about $300 million in the next quarter.
CEO Ed Bastian noted that Delta is “significantly” reducing its flight volume and aims to “offset rising fuel prices.”
American Airlines
American Airlines reported that jet fuel costs and related taxes rose by 13.2%, or $341 million, compared to the first quarter of 2025.
According to CEO Robert Isom, the company has already spent an additional $400 million on fuel since January. And in 2026, costs could rise by another $4 billion, noted the company’s Chief Commercial Officer Nat Piper.
Southwest Airlines
Southwest Airlines reported that its fuel costs rose by $164 million in the first quarter.
“Fuel prices are significantly higher, and if this situation persists, we will have to raise ticket prices to offset this increase in fuel costs,” said CEO Bob Jordan.
The company is also already raising additional fees. In particular, baggage fees have been increased by $10. American, Delta, and United have taken similar steps.
At the same time, the following major market players have announced revisions to their pricing policies:
- Qantas Airways and Air New Zealand — announced fare increases on all routes.
- SAS (Scandinavian Airlines) — introduced a “temporary price adjustment.” A company spokesperson explained that price increases of this magnitude necessitate a response to maintain stable and reliable operations.
- Hong Kong Airlines — is raising fuel surcharges by 35.2%.
- Air India is beginning a phased introduction of additional fees on domestic and international flights.
Meanwhile, IAG (owner of British Airways) stated that thanks to forward hedging (purchasing fuel at fixed prices in advance), it currently has no plans to change fares.
Disruption of air service
In addition to financial costs, the aviation industry has faced logistical chaos.
The narrowing of available airspace is forcing pilots to choose longer and more expensive routes. Cathay Pacific is increasing the number of flights to London and Zurich due to capacity constraints on the Asia-Europe route. Meanwhile, Finnair has warned that a prolonged conflict could lead to a critical fuel shortage.
