Airlines across Asia are raising ticket prices and preparing contingency plans — including the possibility of grounding aircraft — as the escalating Middle East conflict raises fears of a major oil supply shock.
Indian carriers have already increased long-haul fares by around 15% and may introduce further hikes, according to people familiar with the matter. In Vietnam, state media warned that airfares could surge by up to 70% due to the country’s heavy reliance on imported jet fuel.
Hong Kong Airlines also announced higher fuel surcharges from March 12, including an additional HK$5 on mainland China routes and HK$150 on long-haul flights such as those to North America.
Asian airlines are generally less hedged against rising oil prices than many Western carriers, leaving them more exposed to volatile fuel costs. Some Southeast Asian budget airlines are now evaluating scenarios that could involve grounding aircraft if jet fuel becomes too expensive.
Analysts warn that prolonged high fuel prices could force weaker airlines to halt operations, while the broader aviation sector faces growing uncertainty as the conflict continues.