FACTBOX-Price hikes, outlook cuts - What airlines are doing as fuel costs surge
March 30 (Reuters) - A surge in jet fuel prices driven by the U.S.-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise financial outlooks.
Jet fuel prices have soared from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, a financial hit for an industry where fuel accounts for up to a quarter of operating expenses.
Below is a list of how airlines are responding, in alphabetical order:
AEGEAN AIRLINES AGNr.AT
The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a "notable impact" on its first-quarter results.
AIR FRANCE-KLM AIRF.PA
The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros ($57) per round trip.
AIR NEW ZEALAND AIR.NZ
The airline was one of the first to announce broad increases to ticket prices on March 10. It also suspended its full-year earnings forecast due to fuel market volatility.
AKASA AIR
India's Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.
AMERICAN AIRLINES AAL.O
The U.S. carrier said it expected a $400 million increase in first-quarter expenses as fuel prices surge.
CATHAY PACIFIC 0293.HK
The Hong Kong airline said it would hike its fuel surcharge by 34% across routes from April 1 and review them every two weeks. The carrier's CEO said it would maintain flight capacity despite the high fuel prices, but that its 10% passenger capacity growth plan could change if demand declines due to high fuel prices.
CEBU AIR CEB.PS
The Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.
EASYJET EZJ.L
EasyJet CEO Kenton Jarvis said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.
FRONTIER AIRLINES ULCC.O
The U.S. airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.
HONG KONG AIRLINES
The airline said it would raise fuel surcharges by up to 35% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284.
IAG ICAG.L
British Airways-owner IAG said on March 10 it did not plan to increase ticket prices immediately, as it has hedged much of its fuel for the short- to medium-term.
INDIGO INGL.NS
India's biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe.
The company is also lobbying the Indian government to cut fuel taxes, sources told Reuters.
JETBLUE AIRWAYS JBLU.O
The U.S.-based low cost carrier said it was increasing fees for optional services such as checked baggage as it experiences "rising operating costs." Baggage prices will rise by either $4 or $9, the company said.
KOREAN AIR
The South Korean flag carrier will enter emergency management mode from April, as rising oil prices weigh on costs, a source with knowledge of the matter told Reuters. The airline plans to implement phased response measures based on oil price levels, and step up company-wide cost efficiency to offset surging fuel costs.
PAKISTAN INTERNATIONAL AIRLINES
The carrier said it would raise domestic flight fares by $20 and international fares by up to $100, citing higher fuel surcharges.
SAS
The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices. For March, it said it had cancelled a "couple hundred" flights.
SAS, which had already increased flight prices, said that even if it tried to absorb the rising fuel costs, the price surge would still be a blow to the aviation industry.
SPRING AIRLINES 601021.SS
The budget Chinese airline said it would raise fuel surcharges on domestic flights from April 5, with details to be announced later.
THAI AIRWAYS THAI.BK
The Thailand-based carrier said it would raise fares by 10% to 15% to address rising fuel costs.
TURKISH AIRLINES THYAO.IS, LUFTHANSA LHAG.DE
SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros ($11.46) per passenger from May 1 on routes between Turkey and Europe. The surcharge will apply to bookings made on or after April 1 for departures on or after May 1.
UNITED AIRLINES UAL.O
The U.S. airline is cutting unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said.
United has been able to raise fares without materially hurting bookings in response to the rapid increase in oil and jet fuel prices, Chief Commercial Officer Andrew Nocella said.
VIETJET VJC.HM
The Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.
VIETNAM AIRLINES HVN.HM
The carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam's aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.
VIRGIN AUSTRALIA VGN.AX
Virgin Australia said it was adjusting fares to reflect rising cost pressures across the aviation sector, which it said were being significantly exacerbated by the situation in the Middle East.
GREATER BAY AIRLINES
Hong Kong-based Greater Bay Airlines said it would raise fuel surcharges on most routes from April 1 due to higher fuel prices linked to the Iran war, while keeping charges unchanged on mainland China and Japan routes.
Its surcharge for flights between Hong Kong and the Philippines will more than double, the carrier said.
($1 = 0.8708 euros)
($1 = 93.9430 Indian rupees)
($1 = 7.8393 Hong Kong dollars)
($1 = 1.7470 New Zealand dollars)
