Airlines Cut Flights, Raise Fares Amid Fuel Crisis

Global airlines are slashing flights and hiking fares as the war between the United States, Israel, and Iran disrupts jet fuel supplies and drives prices to record highs, with Asia facing the most acute shortages.

The conflict erupted on February 28, 2026, when U.S. and Israeli strikes prompted Iranian retaliation, leading to the effective closure of the Strait of Hormuz. This narrow waterway normally handles about one-fifth of the world's seaborne oil trade, including key supplies for jet fuel production. Since then, jet fuel prices have more than doubled, rising from around $90 per barrel to $150-$200 in many markets. The surge stems from both higher crude oil costs and physical constraints on refined fuel, as refineries in Asia and elsewhere cut output due to feedstock shortages. Fuel, airlines' second-largest expense after labor, now threatens profitability across the industry.

Carriers worldwide have responded with capacity reductions to conserve supplies and offset costs. In Asia, where dependence on Hormuz-transiting crude is highest, airlines are implementing drastic measures. Vietnam Airlines has suspended 23 domestic flights weekly, while Batik Air Malaysia cut...