KUALA LUMPUR - Airlines across the Asia-Pacific region, including Qantas, Air India and Cathay Pacific, have raised or plan to raise ticket prices following a sharp increase in jet fuel costs caused by the conflict in the Middle East.

The average global price of aviation fuel rose to USD173.91 per barrel on March 9, according to the Platts benchmark index, nearly double the level recorded in January and higher than crude oil prices.

The International Air Transport Association said the higher price is partly due to refining costs and because kerosene production is given lower priority compared with petrol and diesel.

The conflict has disrupted oil trade through the Strait of Hormuz, a key shipping route that normally carries about 20% of the world’s oil supply.

The situation affects Asia the most because more than 80% of the oil and gas transported through the strait is sent to markets in the region, according to the US Energy Information Administration.

“Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions,” Air India said on March 10, announcing surcharge rises.

Air India added that the situation is worsened by the high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the impact and placing substantial strain on airline operating economics.

The airline said the fare increase will be introduced in three stages, starting with an additional USD4.30 for domestic flights from March 12 and USD20 for flights to Southeast Asia.

From March 18, the fuel surcharge will rise by 25% to USD125 for flights to Europe and by 33% to USD200 for flights to North America.

However, Air India has not announced details for the third phase of its fare adjustment plan.

Meanwhile, Hong Kong based airline Cathay Pacific announced fuel surcharges on March 11 after jet fuel prices doubled in March compared with the average of the previous two months.

Founder of India’s budget airline SpiceJet, Ajay Singh, urged the government in New Delhi to reduce taxes on jet fuel, warning in an interview with Bloomberg that even oil priced at USD90 per barrel was totally unsustainable.

Ajay also said the airline may consider grounding part of its fleet if fuel prices continue to rise.

Australian airline Qantas said it is also increasing fares, which will vary from route to route, after jet fuel prices surged by as much as 150 per cent over the past two weeks.

“Despite the hedging measures, this situation leads to higher costs for the entire group,” it said.

Dean Long of the Australian Travel Industry Association told ABC News that international airfares may rise by about 5%, although the full impact of the conflict may only be felt in three to six months.

Finance director Rut Rugsumruad of Thai Airways told investors the airline could raise ticket prices by 10% to 15% due to uncertainty in fuel prices, and it still has room to raise fuel surcharges further if oil prices continue to climb.

However, a Thai Airways spokesperson told AFP that prices remain fixed for now, though they are subject to change based on supply and demand.

In Europe, Scandinavian airline Scandinavian Airlines was among the first to announce a temporary fare increase after the conflict began.

Other airlines such as Air France-KLM and Lufthansa are less affected due to their hedging strategy, which allows them to buy fuel at fixed prices months in advance.