Before the dispute, an economy class flight from Sydney to London on Cathay Pacific cost about $1,370.
Thanks to fuel surcharges, it now costs more than $2,000 and can exceed $3,500 on some days.
Before the U.S.-Israel war with Iran began, the global airline industry was forecasting a record $41 billion in profits in 2026.
But with jet fuel prices more than doubling, airlines are under pressure and scrambling to respond.
Airlines from Air New Zealand to Vietnam Airlines have begun cutting flights.
Korean Air is moving into “emergency management mode” to deal with the supply shortage.
And Philippine President Ferdinand Marcos said grounding the planes was “absolutely a possibility.”
China has banned exports of jet fuel to ensure its own supplies.
Chinese airlines are also seeing opportunity in the crisis, adding thousands of flights to Europe thanks to the country’s ability to bypass the Middle East and access Russian airspace.
Nevertheless, Chinese airlines remain exposed to Iran’s energy shock.
Earlier this week, local airline Colorful Guizhou Airlines announced plans to increase fuel surcharges on domestic flights by five times from April 5th.
China’s three largest state-owned airlines, Air China, China Eastern Airlines and China Southern Airlines, have all cautiously reported their outlook for this year.
“The impact of geopolitical conflicts will continue and the overall momentum of global economic growth remains insufficient,” China Eastern said in its annual report on Monday.
According to HSBC, fuel costs accounted for 35-38% of the operating costs of three Chinese airlines in the first half of this year.
Iran’s effective blockade of the Strait of Hormuz leaves Asia vulnerable, as it is more dependent on oil and gas passing through the strait than other regions of the world.
So while Iran maintains its iron grip on the strait, fuel costs are expected to rise around the world from Asia to the United States, and airlines are expected to pass the cost on to consumers.
