Indian carriers have increased fares on long-haul routes by around 15% and are considering further hikes, Bloomberg reported.
Vietnam Airlines has asked the government to remove the environment tax on jet fuel to help maintain operations.
Vietnamese airlines’ operating costs have risen by 60-70% due to the jump in fuel prices as suppliers struggle to meet their demand.
Air New Zealand said it had raised one-way economy fares by NZ$10 (US$5.91) on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul flights, Reuters reported
Jet fuel prices, which were $85-90 per barrel before the conflict, have soared to $150-200 in recent days, the carrier said.
The U.S.-Israeli war of aggression against Iran has sent oil prices skyrocketing, disrupting global travel and raising concerns about a prolonged downturn in the travel industry, including the possibility that airlines could be forced to ground aircraft.
U.S. President Donald Trump said Monday that the war could end soon.
His comments sent markets on a roller coaster, with oil prices retreating to around $90 per barrel on Tuesday from a peak of $119 on Monday.
The conflict has also weighed on Asia’s tourism industry.
South Korea’s HanaTour Service said it has been canceling group tours involving flights to the Middle East, including trips to Dubai and itineraries transiting through the city on the way to Europe, Reuters reported.
The company said it is waiving cancellation fees for affected customers and would suspend all Middle East-related tours in March.
In Thailand, its Ministry of Tourism forecast the country could lose 596,000 visitors and 40.9 billion baht ($1.29 billion) in tourism revenues if the conflict drags on for more than eight weeks.
Indonesia’s resort island of Bali is already seeing a drop in international arrivals, with 800 fewer tourists arriving each day, largely from Middle Eastern markets, as airspace disruptions linked to the conflict affect flight routes.
“The issue for airlines now is that travel demand may be curtailed as costs become prohibitive for leisure travelers and as some companies start to limit business travel due to the uncertain outlook,” Lorraine Tan, director of equity research for Asia at research company Morningstar, said as quoted by Channel News Asia.
The impact of higher airfares could dampen travel demand throughout much of 2026, she added.
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