Surge in jet fuel prices could push up air fares, analysts warn
“Even airlines that will have hedged… will normally have hedged their supply or have long-term contracts from Asia. Now these Asian refineries will also be receiving less crude from the Gulf,” he told BBC’s Today programme.
“Therefore, we will be very close to the moment where they start to reduce production rates, and… these airlines will be scrambling around to find fuel from alternative sources.”
Reuters, BBC News 6, 2026 – Jet fuel prices have surged more than 80% after supply disruptions from the Gulf following US and Israeli strikes on Iran and the closure of the Strait of Hormuz, raising concerns about higher airfares, flight cancellations, and airline profit pressures. With fuel accounting for 20–40% of airline costs, analysts warn that unhedged fuel exposure could quickly drive up ticket prices, though some European carriers remain partly protected through hedging. Experts also caution that if Gulf supply disruptions persist, physical shortages could emerge, forcing airlines to seek alternative fuel sources and potentially reduce flights, with travellers likely facing higher fares ahead of the summer holiday season.
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