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

Air travel across Italy was disrupted on Friday after a technical fault affected the country’s air traffic control systems, resulting in flight delays and cancellations.

Air traffic control provider ENAV said it had introduced temporary restrictions on air traffic capacity after detecting overnight anomalies in the data transmission network supporting air traffic services nationwide.

Authorities said the disruption was not caused by sabotage and confirmed that the technical issue had been resolved later in the day.

Data from aviation analytics company Cirium showed that 192 flights had been cancelled by around 1000 GMT. At the same time, only about 31% of departures from Italian airports were leaving on schedule.

The situation was particularly challenging at the country’s major airports. On-time departures stood at approximately 25% at Milan Malpensa Airport and 28% at Rome Fiumicino Airport.

ENAV announced at around 1325 GMT that it had restored full operational capacity, bringing the technical disruption to an end.

Source: Reuters

Saudi telecom operator STC Group is offering free, unlimited calls to and from Saudi Arabia for customers roaming overseas, helping travellers maintain contact with their families amid continuing flight disruptions.

Announced on X, the initiative runs from October 12 to October 19. STC said the offer was intended to support customers facing difficulties staying connected with loved ones during an uncertain period.

“We understand how difficult it can be to be away from family, particularly during times like these,” the company told Arab News.

STC added that free, unlimited calling would make it easier for customers outside the Kingdom to communicate with relatives and provide reassurance during the disruption.

The initiative comes as flights to and from Riyadh face interruptions following a recent attack on King Khalid International Airport.

On Monday, Saudi Arabia’s General Authority of Civil Aviation announced on X that the airport’s operational suspension had been extended to allow safety inspections of its facilities to be completed. The authority did not provide a timeline for the resumption of flights.

Traveller Welcomes Initiative but Calls for Free Internet

Hisham Al-Ghasim, a Saudi citizen whose return journey from Bangkok to Riyadh was disrupted, welcomed STC’s offer but said free internet access would have been more practical.

His existing mobile package already covered calls, while internet connectivity was important for arranging alternative travel, making bookings and accessing essential applications.

He told Arab News that providing unrestricted internet access instead of free calls would have been more useful because many everyday communications and travel arrangements depend on online services.

Al-Ghasim had completed a business trip to Bangkok and was waiting for a taxi when he received a notification that his return flight had been delayed.

He said he was informed that his departure had been postponed by three days. Although he had been following developments, he had not expected his flight booking to be cancelled.

His original itinerary involved an Emirates flight via Dubai to Riyadh. He subsequently arranged to end his journey in the United Arab Emirates instead.

After reaching Dubai, Al-Ghasim contacted the Saudi Consulate General, which offered assistance with returning to the Kingdom by road through organised group transport.

Saudi Missions Assist Stranded Citizens

Saudi embassies and consulates have also been helping citizens affected by flight cancellations associated with regional security developments.

Their support includes arranging emergency accommodation and helping travellers identify alternative routes to return home as aviation disruptions continue.

Source: Arab News

flydubai has cancelled all flights to Riyadh until October 14, the airline confirmed in a statement.

A spokesperson said the carrier is monitoring the situation in coordination with the relevant authorities and will notify passengers of any changes to flight schedules through its official communication channels.

Passengers affected by the cancellations have been advised to visit the Manage Booking section on the airline’s website, flydubai.com, to review available refund or rebooking options.

Customers who purchased tickets through travel agents should contact their agents directly for assistance.

The airline apologised to passengers for the inconvenience caused by the disruption and said it would continue to provide updates through its official channels.

Source: Emirates247

Qatar Airways has temporarily suspended services to Riyadh and Dammam, issuing a travel alert for passengers travelling to the two Saudi Arabian destinations.

The Qatari airline said it was monitoring developments in Saudi Arabia in coordination with the relevant authorities. In response to the evolving situation, the carrier halted flights to both cities until further notice.

Passengers have been urged to verify their flight status through the airline’s official website or mobile application before travelling.

Qatar Airways said the safety of passengers and crew remains its highest priority. The airline added that customers affected by the suspensions would be contacted directly, with additional updates published on its website as more information becomes available.

Source: QNA

Several UAE airlines have cancelled flights to Saudi Arabia, disrupting services to Riyadh and Dammam between October 10 and October 14, according to airline announcements and published flight schedules.

Flydubai confirmed that its flights between Dubai and Riyadh would remain cancelled through October 14. The airline said it was monitoring developments in coordination with the relevant authorities and would communicate further schedule changes through its official channels.

Passengers affected by the cancellations have been advised to visit the Manage Booking section on flydubai’s website to review available refund and rebooking options. Customers who purchased tickets through travel agents should contact their respective agents for assistance. The airline also apologised for the inconvenience caused by the changes.

Etihad Airways has cancelled selected flights between Zayed International Airport in Abu Dhabi and King Khalid International Airport in Riyadh for the period from October 10 to October 12.

Emirates has also recorded cancellations on several services between Dubai and Riyadh on October 11 and 12. Disruptions extended to flights connecting Dubai with Dammam on October 11.

For October 12, Emirates' published schedules listed flights EK823 and EK821 between Dubai and Dammam as cancelled, while flight EK827 remained scheduled to operate.

The cancellations reflect schedule adjustments by multiple UAE carriers serving Saudi Arabia during the affected period.

Airlines have advised passengers to monitor official communication channels for the latest flight information and to contact their carriers or travel agents to discuss available options if their journeys have been affected.

Source: Emirates247