Airlines worldwide are adjusting ticket prices and scaling back flight capacity in response to a sudden spike in oil prices, a shift that could test the industry’s profitability if higher travel costs discourage passengers.

Prior to the escalation of the U.S.-Israeli conflict involving Iran last month, the aviation sector had projected record profits of $41 billion for 2026. However, a sharp increase in jet fuel costs—reportedly doubling in recent weeks—has disrupted those expectations, prompting carriers to reassess their operations and route networks.

Major airlines, including United Airlines, Air New Zealand, and Scandinavian Airlines, have already announced capacity reductions alongside fare increases. Others have introduced or expanded fuel surcharges to offset rising expenses.

Industry experts warn that airlines are facing conflicting pressures. Rigas Doganis, former head of Olympic Airways and a past director at easyJet, described the situation as a “perfect storm,” noting that carriers may need to lower fares to stimulate weakening demand even as higher fuel costs push them in the opposite direction.

The sector had enjoyed a strong recovery in 2025, with global passenger traffic reaching levels approximately 9% above those seen before the COVID-19 pandemic. Robust demand and supply-chain constraints, particularly delays in aircraft deliveries, had allowed airlines to maintain high seat occupancy and exert pricing power.

However, the scale of fare increases required to offset fuel costs could prove challenging, especially as households face higher gasoline prices that may limit discretionary spending on travel.

Analysts suggest capacity reductions may be the primary tool airlines use to support pricing. Andrew Lobbenberg, head of European transport equity research at Barclays, said cutting available seats is often the most effective way to drive fares higher during periods of crisis.

Airlines have already begun signaling the extent of potential fare hikes. The chief executive of United Airlines, Scott Kirby, recently indicated ticket prices may need to rise by around 20% to cover fuel costs.

Meanwhile, Cathay Pacific has increased fuel surcharges twice in the past month. From Wednesday, passengers flying return economy routes between Sydney and London will face an additional $800 surcharge, compared to a typical pre-crisis fare of about A$2,000 ($1,369.60).

Low-cost carriers are expected to be particularly vulnerable, as their customer base tends to be more sensitive to price increases. Analysts note that some travelers may shift to alternative transport options, such as rail or bus services, especially for short-haul journeys.

The current পরিস্থিত represents the fourth major oil shock for the aviation industry since the early 2000s. Previous disruptions occurred during the 2007–2008 pre-financial crisis period, following the Arab Spring in 2011, and after the outbreak of the Russia-Ukraine war in 2022.

This time, additional concerns have emerged over fuel supply security, particularly due to the closure of the Strait of Hormuz, a critical energy transit route. Airlines such as Vietnam Airlines have raised concerns about access to physical fuel supplies.

While airlines have sought to improve efficiency by modernizing fleets, supply-chain disruptions and technical issues with next-generation aircraft engines have delayed deliveries, limiting their ability to reduce fuel consumption.

Industry consolidation in the United States over the past decade has also reshaped the sector, with mergers such as Delta-Northwest and American Airlines-US Airways reducing the number of major carriers and enabling tighter capacity management. Meanwhile, low-cost operators like Ryanair and IndiGo have focused on streamlined fleets and rapid turnaround times to control costs.

According to aviation consultancy IBA, the current crisis is likely to widen the gap between stronger and weaker airlines. Companies with solid financial reserves and access to capital are expected to better withstand prolonged cost pressures, while those with weaker balance sheets may face growing financial strain.

Source: ZAWYA

Kuwait’s acting director general of civil aviation, Duaij Al-Otaibi, has said that Kuwait International Airport is secure and prepared to fully resume operations once clearance is granted by the relevant authorities.

Speaking to Kuwait News Agency on Monday, Al-Otaibi stressed that safeguarding passengers, personnel and infrastructure remains the primary concern guiding all operational decisions. He described the current security arrangements as precautionary steps aimed at maintaining high protection standards, acknowledging that they may cause some inconvenience to travellers.

He noted that the airport is gradually restoring activity levels to those seen before the recent Iranian aggression, with improvements underway in both performance and operational efficiency. Passenger flow is being carefully managed to ensure smooth movement from parking areas to terminals.

As part of temporary security protocols, boarding gates are not currently in use, with passengers transported to aircraft by bus. Authorities are reviewing the situation and may reinstate standard boarding procedures following further assessment.

Additional support has been introduced for elderly passengers and those with disabilities, including electric wheelchairs and improved access through elevators. Al-Otaibi added that the main terminal entrance is expected to reopen in the coming days after coordination with key bodies such as the Ministry of Interior and the General Fire Force.

He said the measures form part of a wider safety strategy, supported by weekly operational reviews to facilitate a phased return to normal services.

Al-Otaibi also revealed that the airport’s control tower—considered among the most advanced globally—was targeted during the recent attack, with damage recorded through audio and video documentation. The incident drew condemnation from the International Civil Aviation Organization. He added that radar and technical systems were quickly repaired through coordinated efforts and leadership support.

Senior officials, including His Highness Sheikh Ahmed Abdullah Al-Ahmed Al-Sabah, conducted on-site inspections to assess the damage and commended the level of preparedness and compliance with safety standards. The Civil Aviation Authority, led by Sheikh Hamoud Mubarak Al-Hamoud Al-Sabah, implemented emergency and security protocols in coordination with multiple agencies, reflecting a high level of institutional cooperation.

Al-Otaibi also acknowledged the role of Sheikh Abdullah Ali Abdullah Al-Salem Al-Sabah in overseeing readiness efforts, as well as the support of the General Authority of Civil Aviation for facilitating Kuwaiti airline operations through access to Saudi airports. He said such collaboration underscores the importance of Gulf cooperation in maintaining aviation continuity.

Highlighting Kuwait’s long-term ambitions, Al-Otaibi pointed to the country’s advanced infrastructure, including a modern third runway, an upgraded control tower and sophisticated air navigation systems, positioning it as a potential regional aviation hub. He also cited Kuwait’s strategic location and connectivity projects, including links to Mubarak Al-Kabeer Port, as key factors supporting its development as a logistics centre.

Looking ahead, he outlined plans to establish a dedicated aviation academy to train national talent, noting the increasing participation of young Kuwaitis in the sector and the need to expand training programmes to meet future demand.

Despite ongoing regional tensions, Al-Otaibi said the security situation remains stable. He advised passengers to follow official guidance, avoid congestion, arrive at the airport at least three hours before departure and refrain from making unnecessary bookings that could disrupt operations.

Source: QCAA NEWS

Nigeria’s government has imposed limits on jet fuel prices and approved credit arrangements for airlines in an effort to prevent widespread flight disruptions linked to sharply rising fuel costs, according to an official document reviewed by Reuters.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) set indicative retail price ranges for aviation fuel between 1,760 naira and 1,988 naira per litre in Lagos, and between 1,809 naira and 2,037 naira in Abuja. These benchmarks are based on pricing data from April 17 to April 23.

Despite the pricing framework, the regulator cautioned that volatility in global energy markets, including tensions involving the United States and Iran, as well as higher supplier costs, could still push prices upward.

Neither the NMDPRA nor the aviation ministry immediately responded to requests for comment.

The policy shift follows emergency discussions triggered by airline warnings that jet fuel prices had surged by more than 270%. Operators said the spike had forced fare increases and raised concerns over potential capacity reductions.

Last week, President Bola Tinubu approved a 30% relief measure on airline debts owed to aviation agencies. He also directed fuel suppliers, airlines, and regulators to agree on a “fair” pricing structure within 72 hours to avoid disruption across the aviation sector.

As part of the agreed measures, airlines will be granted a 30-day credit period for fuel purchases. The aviation ministry has also been tasked with mediating outstanding debt disputes between operators and petroleum marketers, according to the document.

A technical committee established by the NMDPRA recommended that fuel marketers supply airlines directly within the approved price band, a move intended to reduce costs and improve transparency in the supply chain.

The committee also called for engagement with Dangote Petroleum Refinery and Petrochemicals regarding recently increased premiums applied to international pricing benchmarks used for jet fuel.

Additional recommendations include stricter validation of fuel distributors operating in airport zones, which could reduce the number of authorised suppliers, as well as exploring the inclusion of jet fuel under Nigeria’s naira-for-crude programme to limit airlines’ exposure to foreign exchange fluctuations.

(Exchange rate used: $1 = 1,360.5 naira)

Source: ZAWYA

The Dubai Civil Aviation Authority (DCAA) has introduced a new Aviation Consumer Welfare Directive designed to enhance passenger rights and improve how complaints and disputes are managed within the emirate’s aviation sector.

The initiative establishes a structured regulatory system that defines the relationship between passengers, airlines, and licensed travel agencies. It also introduces formal mediation processes, giving the regulator a more active role in resolving conflicts and protecting consumer interests.

Under the new framework, passengers will have access to a clearer and more transparent process for lodging and monitoring complaints. The DCAA will act as an intermediary, facilitating communication between involved parties and overseeing resolution procedures. Authorities say the system is intended to strengthen accountability and build greater trust across the aviation ecosystem.

The directive applies to all passengers travelling through Dubai’s airports, as well as airlines and authorised travel agents operating in the emirate. By formalising operational and service expectations, the framework aims to reduce disputes and improve consistency in handling passenger concerns.

The DCAA will be responsible for implementing and supervising the system, including establishing regulatory standards, enabling mediation channels, and ensuring compliance among all stakeholders. The broader objective is to improve service quality and enhance the overall passenger experience across Dubai’s aviation sector.

Source: ZAWYA

The Dubai Civil Aviation Authority (DCAA) has introduced a new Aviation Consumer Welfare Directive designed to reinforce protections for airline passengers and improve how complaints and disputes are handled within Dubai’s aviation industry.

The directive sets out a unified regulatory structure defining the relationships between passengers, airlines, and licensed travel agents. It also introduces a formal mediation process intended to resolve disagreements more efficiently, reflecting a more proactive regulatory approach to consumer protection.

Under the new system, passengers will have access to a transparent mechanism for lodging complaints and tracking their progress. The DCAA will act as a facilitator between relevant parties, ensuring communication is streamlined and disputes are addressed through structured resolution channels. Authorities say the initiative is intended to strengthen trust and accountability across the aviation sector.

The framework covers all passengers travelling through Dubai’s airports, along with airlines and authorised travel agencies operating in the emirate. By formalising operational relationships, it aims to improve transparency and reduce friction in the handling of customer grievances.

The DCAA will oversee the implementation of the directive, including the establishment of regulatory standards, mediation processes, and compliance monitoring. The authority stated that the broader objective is to enhance service quality and improve the overall passenger experience across Dubai’s aviation network.

Source: ZAWYA

Hamad International Airport has confirmed a continued expansion in flight activity, with more international airlines restoring operations as connectivity to Doha gradually strengthens.

In a statement shared عبر social media, the airport said additional airline partners are rejoining its network, noting that services are being reinstated in stages. Passengers were advised to check directly with their respective airlines for booking details and updated schedules.

Operational updates indicate a phased return of carriers over several weeks. flydubai resumed flights on April 21, followed by Air Arabia on April 22.

On April 23, services restarted for Oman Air, Tarco Aviation, US-Bangla Airlines, and Royal Jordanian.

Further resumptions followed on April 26, with Biman Bangladesh Airlines, Middle East Airlines, and Nepal Airlines returning to service. The next day saw operations restart for Badr Airlines and Syrian Air.

On April 28, flights resumed for EgyptAir and Himalaya Airlines.

Looking ahead, additional carriers are scheduled to return in May. Air India, Air India Express, and Gulf Air are expected to resume on May 1. Ethiopian Airlines will follow on May 4, with SriLankan Airlines on May 11 and Kam Air on May 16.

Royal Air Maroc is scheduled to restart operations later in the summer, beginning July 1.

Airport authorities emphasized that all flight activity is being coordinated closely with relevant regulators and airline partners. They also cautioned that schedules remain subject to change, with possible adjustments or cancellations due to factors outside operational control.

Source: ZAWYA