Airlines raise fares amid rising fuel costs and Middle East instability

Global aviation faces significant disruption as jet fuel prices have surged from 85-90 dollars to 150-200 dollars per barrel, following conflict between Iran and a coalition involving the US and Israel. Major carriers like Air New Zealand and Qantas Airways have responded by increasing ticket prices and adjusting operations. Air New Zealand has suspended its 2026 financial forecast due to market volatility, with domestic and international fare increases ranging from 10 to 90 New Zealand dollars. Qantas is reviewing flight capacity for European routes to avoid regional airspace risks. Meanwhile, Cathay Pacific has expanded service to London and Zurich to address network instability. On Tuesday, flights arriving in Dubai were temporarily placed in holding patterns following reports of potential missile activity, though all aircraft eventually landed safely. Ongoing aerial threats in the Middle East continue to force airlines to reroute or reconsider flight paths.