The International Air Transport Association has predicted that air travel will become more expensive, stating that airlines can no longer absorb the high cost of fuel on their own, according to media reports.
According to details, the association has raised an alarm over a severe shortage and rising prices of jet fuel worldwide, including in Asia, Europe and Africa.
IATA Director General Willie Walsh warned that the sharp increase in fuel costs will be directly passed on to passengers leading to higher airfares. He emphasised that it is no longer possible for airlines to bear these rising expenses themselves.
Walsh said that the current situation is not like the COVID-19 pandemic, as demand for air travel remains strong. However, the crisis is expected to have the greatest impact on Asia, Europe, Africa, and Latin America.
Due to fuel shortages in Asia and Europe, fuel rationing may be introduced, raising concerns about potential flight cancellations.
Experts say the situation could worsen during the peak summer season, when demand for air travel is at its highest, making the fuel shortage more critical.
Earlier, several international airlines, including Qantas, Scandinavian Airlines, and Air New Zealand, announced massive increases in airfares following a sharp rise in global fuel prices.
Air New Zealand said the uncertainty created by the conflict has also prompted the airline to suspend its financial outlook for 2026.
The escalation has disrupted shipping through the strategically vital Strait of Hormuz, one of the world’s most important oil export corridors. As a result, oil prices have surged globally, impacting travel demand and pushing ticket prices higher on many routes.
A spokesperson for Scandinavian Airlines said the company had introduced a temporary fare adjustment due to the sharp rise in fuel costs, saying that increases of this scale required immediate action to maintain stable operations.
Meanwhile, several other carriers such as Lufthansa and Ryanair have partially protected themselves through fuel hedging, securing a portion of their fuel supplies at fixed prices.
Finnair, which had hedged more than 80 per cent of its first-quarter fuel needs, warned that if the conflict continues, fuel availability could also become a concern.
“A prolonged crisis could affect not only the price of fuel but also its availability, at least temporarily,” a Finnair spokesperson said, while adding that no such shortage had occurred yet.
Also read: Airlines announce hike in ticket prices, check new rates here
