Global Airfares Enter Price Increase Era as Multiple Airlines Worldwide Announce Fuel Surcharge Hikes

How does the Middle East situation drive up global aviation fuel costs?

Beijing News Shell Finance Report (Reporter Yu Jinmin) Recently, as tensions in the Middle East escalate and global economic uncertainties increase, oil prices continue to rise, putting direct pressure on the global aviation industry. According to the latest data, some airlines have raised ticket prices and fuel surcharges to pass on the costs.

According to Shell Finance reporters, fuel surcharges on international routes do not have a fixed increase window and are decided by airlines based on market conditions; for domestic routes, fuel surcharges are adjusted once a month on the 5th, with the next adjustment scheduled for April 5. If current oil prices persist, the surcharge is likely to increase from the current 20 yuan to around 50 yuan.

On March 17, both Juneyao Airlines and Xiamen Airlines announced increases in fuel surcharges for some international routes, with the amount varying depending on the distance. The route from China to Indonesia saw the highest increase, rising to 600 yuan. Earlier, on March 11, Spring Airlines also raised fuel surcharges for international routes. For example, the surcharge from Shanghai to Jeju Island increased from 0 to 90 yuan.

Spring Airlines announced on March 11 that starting from midnight on March 12, 2026 (based on the order date), it would adjust the fuel surcharge standards for some international passenger routes, mainly involving flights between multiple cities in mainland China and South Korea, Japan, Vietnam, Thailand, Malaysia, and Cambodia. The route with the largest increase was Shanghai to Malaysia (Penang, Kuala Lumpur), with an increase of 180 yuan.

In addition to domestic airlines, global carriers are also generally raising fuel surcharges. In mid-March, Cathay Pacific, headquartered in Hong Kong, announced that its fuel surcharges had more than doubled, with long-haul flights increasing from 569 HKD to 1164 HKD. Some airlines have chosen to directly raise ticket prices, such as Air New Zealand, which announced a 10 NZD increase on domestic routes and a 90 NZD increase on long-haul international flights.

As a major global energy route, about 20 million barrels of crude oil (20% of the world’s supply) pass through the Strait of Hormuz daily. Recently, U.S. and Israeli military actions against Iran have nearly blocked shipping through the Strait, leading to a rise in global oil prices.

Before the conflict, aviation fuel prices were around $85–$90 per barrel, but recently they have surged to between $150 and $200, with some regions experiencing even doubling of prices.

The aviation industry is one of the most oil-dependent sectors. Oil prices have always ranked first among airline costs, accounting for about one-third of total expenses. In 2024, the fuel costs for China National Aviation Corporation (Air China), China Eastern Airlines, and China Southern Airlines were 53.72 billion yuan, 45.50 billion yuan, and 54.99 billion yuan respectively, representing 33.96%, 35.97%, and 34.46% of their total costs.

Editor: Chen Li
Proofreader: Mu Xiangtong