Air France-KLM hikes long-haul ticket prices, as cost of jet fuel soars amid Iran war
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Air France-KLM said economy class return fares would typically increase by €50 (S$73).
PHOTO: AFP
- Air France-KLM raises long-haul fares due to soaring jet fuel prices following the Iran war, with economy tickets increasing by €50.
- Other airlines like SAS, Cathay Pacific, Air India, and Qantas have also increased fares; Cathay Pacific doubled fuel surcharges.
- Aviation fuel prices have doubled since January, reaching US$168 per barrel, prompting airlines to use hedging to mitigate costs.
AI generated
PARIS - Air France-KLM said on March 12 it is raising long-haul ticket prices due to soaring jet fuel prices caused by the Iran war.
“The current geopolitical situation in the Middle East has led to a sudden and significant increase in fuel prices, particularly kerosene. As a result, Air France and KLM are increasing their fares on long-haul flights for tickets issued from March 11, 2026,” the group said in a statement, confirming a report in financial daily Les Echos.
The group said economy class return fares would typically increase by €50 (S$73) as it followed carriers such as SAS, Cathay Pacific, Air India and Qantas in hiking fares.
Low-cost carrier Transavia, owned by the group, has elected not to increase its fares as yet, but is “monitoring the situation closely and will take action if necessary,” a spokesperson told AFP.
The average global price of aviation fuel reached nearly US$168 per barrel on March 11, according to the Platts benchmark index, slightly down on March 9 but double Jan 2 levels.
The increase has been sharper than for crude oil prices owing to extra refining and associated costs.
The price of a barrel of Brent crude briefly topped US$100 on March 12, despite an unprecedented release by International Energy Agency members of stocks to avoid a global shortage.
Fuel is a major expense for airlines, either first or second depending on the carrier.
Some airlines will look to limit the effects of the price rise through a “hedging” strategy comprising buying fuel at a fixed price several months in advance.
Air France-KLM said in February it had strengthened its own hedging policy by securing 70 per cent of its supplies for the current and next quarters, then 60 per cent for the following quarter.
Hong Kong-based Cathay Pacific said earlier it was doubling its fuel surcharge for most routes from March 18, with flights between Hong Kong and Europe bringing a fuel surcharge rising from around €62 to around €129.
Another local airline, Hong Kong Airlines, announced on March 12 that it had also increased its fuel surcharge for most of its flights. AFP
