Asian Airlines Raise Ticket Prices as Fuel Costs Surge

2 hours ago 1

March 29, 2026 | 08:06 am

Illustration of an airplane passenger. Freepik.com/Standret

TEMPO.CO, Jakarta The aviation industry faces significant challenges as jet fuel (avtur) prices soar in early 2026. The conflict in the Middle East, which has disrupted global oil supplies, has become a major driver for major airlines such as Cathay Pacific, Singapore Airlines (SIA), and low-cost carriers (LCCs) to raise ticket prices to cover soaring operational costs.

As reported by The Sun, Hong Kong-based airline Cathay Pacific officially increased its fuel surcharge by 34 percent starting April 1, 2026. This move was taken after the average global price of jet fuel soared to US$197 (approximately Rp3.1 million) per barrel, a significant increase from US$95.50 (approximately Rp1.5 million) per barrel the previous month. Cathay stated that it would review this surcharge policy every two weeks to adjust for market price volatility.

Singapore Airlines and its subsidiary, Scoot, are experiencing a similar situation. A CNA report stated that SIA has increased fares across its entire network. An SIA spokesperson explained that fuel costs account for approximately 30 percent of the group's total expenses, making it the largest single cost component. While fares have increased, the airline acknowledged that these measures haven't fully offset the sudden surge in costs.

OAG Aviation analyst Mayur Patel highlighted that Asia is the most impacted region, as 84 percent of the oil passing through the Strait of Hormuz is destined for the Asian market. "Asia is highly dependent on supplies from the Middle East, so the closure of this distribution route puts greater pressure than other regions," Patel said. This is exacerbated by stringent aviation fuel quality standards, making reserves more difficult to manage than other types of fuel.

In addition to fare increases, several airlines have begun taking drastic measures by suspending routes. Cathay Pacific extended its suspension of flights to Dubai and Riyadh until May 31, while SIA canceled flights to Dubai until the end of April. Low-cost carriers such as AirAsia X and Cebu Pacific have also begun adjusting fares by between 20 percent and 26 percent as a temporary response.

IMANDA ZAHWA

Read: Vietnam Airlines to Cancel 23 Weekly Flights Amid Fuel Crisis

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