Iran War: Global Airlines Cut Flights as Fuel Costs Surge | World Business Watch | WION

Added: 2026-05-07

[00:00:00]The global oil shock is hitting the skies as tensions escalate in West Asia.

[00:00:05]Surging crude prices are pushing jet fuel costs sharply higher. The aviation industry is now entering a fresh phase of turbulence, one that could mean fewer flights and costlier travel for passengers worldwide. So before planning your next trip, take a look at this next report.

[00:00:24]The escalating West Asia conflict is now spilling into global aviation as crude oil prices surge and jet fuel becomes significantly more expensive. Aviation turbine fuel which makes up as much as 30 to 40% of airline operating cost has seen sharp increases worldwide.

[00:00:42]In Europe, jet fuel prices have risen over 120% in a matter of weeks. While in India, ATF prices are up nearly 25%.

[00:00:52]The disruption of supplies through the straight of foremost has triggered volatility across markets. Airlines are now facing a dual challenge of rising fuel cost and constrained supply forcing them to reassess operations globally.

[00:01:08]>> The implications of this situation are not limited to the loss of a single flight to Modellin from Sharah. They also affect jet fuel prices and the availability of jet fuel itself which the entire industry may experience this summer. Even though our carriers have hedging agreements in place and have secured fixed fuel prices and availability for this year, we are aware that this will be a global problem this year.

[00:01:33]Airlines across regions are already responding with capacity cuts and fair increases. Air India has announced a reduction of nearly 100 flights daily, trimming close to 10% of its total operations, including key international routes.

[00:01:48]Globally, carriers like Lufansa plan to cut up to 20,000 flights, while over 30,000 services have already been cancelled in the Gulf since the conflict began.

[00:02:00]The largest issue facing airlines is not the cost of airline tickets rising as a result of the price increase in kerosene which they will undoubtedly pass on to travelers. The biggest problem is rather the potential physical unavailability of kerosene.

[00:02:16]The pressure is especially intense for lowcost carriers with limited margins.

[00:02:21]In the United States, Spirit Airlines has shut down operations after 34 years, putting around 17,000 jobs at risk.

[00:02:31]Even airlines with hedging strategies are facing rising costs with partial fuel exposure leading to significant financial strain. The ripple effects are now being felt across passengers, cargo and employment.

[00:02:44]Airfares, particularly on longhaul routes, have surged as airlines pass on higher fuel costs. Capacity cards are also reducing seat availability and increasing travel disruptions. Cargo fairs are expected to rise as fewer passenger flights limit freight capacity. If the oil crisis persists, more airlines may be forced to cut routes, delay expansion or restructure operations, signaling deeper turbulence ahead for global aviation. Business bureau we on world is one.