Global air fares have surged on the back of the Iran war, with the lowest-priced economy tickets now costing 24% more on average than a year ago, according to new research from consultancy Teneo reported by the BBC.
Airspace restrictions caused by the conflict have forced airlines to re-route many flights, increasing fuel burn, while disruption to oil supplies has pushed the cost of jet fuel itself sharply higher. Jet fuel prices have climbed from about $85–$90 per barrel to $150–$200 per barrel in recent weeks. Fuel accounts for up to a quarter of airlines’ operating expenses.
There has also been a significant loss of capacity on long-haul routes normally served by Gulf carriers, whose operations have been heavily disrupted. Although rival airlines have expanded services to some destinations, the market remains short of seats.
The steepest increases have fallen on routes between Europe and East Asia. A London–Melbourne flight in June now costs 76% more than last year, while Hong Kong–London is up 72%, the Teneo report says.
On Tuesday US President Donald Trump said he would extend the ceasefire with Iran indefinitely while peace talks progress, adding that Washington would continue its naval blockade of Iranian ports until Tehran presents a “unified proposal”.
UK-based airlines have warned that if the conflict continues or worsens they will be forced to cut flights and raise fares further. In a confidential briefing to ministers and the Civil Aviation Authority, Airlines UK — which represents EasyJet, Ryanair, British Airways and Virgin Atlantic — called for fuel-shortage delays to be treated as “extraordinary circumstances” exempt from compensation, for Air Passenger Duty to be cut or suspended, and for the UK’s emissions trading scheme to be temporarily paused. Sources told the BBC the compensation exemption is not being seriously considered.
For Sri Lankan travellers, the global squeeze compounds an already-painful outlook. SriLankan Airlines lifted west-bound fares by as much as 150% as Hormuz-zone routing added hours of flight time, and further increases look likely if the Strait remains closed to commercial traffic.
