Julia, a 22-year-old Romanian traveler, recently canceled her planned trip to Malaysia after being quoted US$3,440 for a round-trip flight, several times the usual fare, Hong Kong newspaper South China Morning Post reported.
Even with a layover in Istanbul or Amsterdam, the fare was too high.
“I can’t afford it,” she said, a growing complaint among international travelers as soaring jet fuel prices reaching US$234.3 per barrel on March 24 continue to weigh on travel demand.
Tourists in Kuala Lumpur, Malaysia. Photo by Reuters |
Fatih Birol, head of the International Energy Agency, warned that the current crisis could surpass the combined impact of the 1970s oil shocks and the Russia-Ukraine conflict, posing a “very, very big” threat to the global economy, Reuters reported.
Since April 1 major Asian carriers have moved to offset rising fuel costs through higher fares and surcharges.
Cathay Pacific announced a 34% increase across its network, with long-haul surcharges rising by up to $200.
Singapore Airlines and its low-cost arm Scoot have also raised ticket prices.
Budget carriers across Southeast Asia are following suit.
Cebu Pacific has increased fares by 20-26% for flights through May, while Thai Airways is expected to raise prices by 10-15%.
Vietnam Airlines warned it could “lose money on every flight” if fuel remains near $200 per barrel.
In Vietnam, airlines fuel surcharges on domestic routes between April and June.
Ticket prices on key routes such as Hanoi-Ho Chi Minh City could rise to VND4 million ($152), while Hanoi-Phu Quoc fares could become even higher.
Ripple effects across tourism
The impact is spreading beyond aviation.
Rising fuel costs are disrupting transport services and squeezing margins across the tourism supply chain.
In Thailand, taxi operations at Suvarnabhumi Airport have been affected, with the number of SUV taxis dropping from 5,000 to around 2,500.
Drivers are increasingly reluctant to make long-distance trips due to fuel uncertainty.
In Cambodia, gasoline prices have risen by 35% and diesel by more than 60%.
Sinan Thourn of the Pacific Asia Travel Association said rising fuel costs are affecting everything from transport and accommodation to guided tours and food services.
Tour operators, taxi drivers and shuttle providers are facing shrinking margins, while some airlines and agencies have begun repricing tours and applying fuel surcharges, moves that could dampen demand, especially for last-minute travel.
He warned that higher costs across accommodation, food and transport would likely force tourists to cut spending and reduce activities.
Amid mounting pressure, governments and industry groups are seeking measures to mitigate the impact.
In Thailand, the Association of Thai Airline Engineers is proposing a temporary cut in aviation fuel excise taxes to stabilize ticket prices. Authorities are also promoting domestic tourism and shorter-distance travel to reduce energy consumption, Bangkok Post reported.
In Singapore, taxi operators such as ComfortDelGro and Grab have raised fares.
Malaysia may be relatively insulated due to its strong reliance on regional visitors. Government data suggests neighboring Singapore could account for up to half of international arrivals by 2025, providing a buffer against long-haul travel disruptions.
Shukor Yusof, founder of aviation consulting firm Endau Analytics, warns that if the Strait of Hormuz remains closed for an extended period, gasoline, petrochemicals and food prices will also be affected, further dampening demand for non-essential spending such as tourism.
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