World airfare prices have skyrocketed since April

On March 26, Hong Kong’s Cathay Pacific announced that it would increase fuel surcharges by 34% on all routes from April 1 and conduct a review every two weeks. The reason is that jet fuel prices have increased due to the impact of the war in the Middle East.

The new fuel surcharge will be 50 USD for short-haul flights, 93 USD for medium-haul flights and 200 USD for long-haul flights.

According to the International Air Transport Association (IATA), the global average price of jet fuel has nearly doubled since the conflict broke out on February 28. As of March 20, the price had reached 197 USD per barrel.

The sudden increase in fuel costs, which accounts for up to a quarter of the industry’s operating costs, is disrupting global aviation. Many airlines were forced to increase ticket prices, cut capacity and readjust financial forecasts.

At Cathay Pacific, fuel accounts for about 30% of operating costs in 2025. Despite implementing partial hedging measures, the company is still vulnerable to the current increase in oil prices.

“If the galloping increase in fuel costs is not effectively controlled, we will not be able to maintain stable operations of our flight network,” a representative of Hong Kong’s national airline affirmed.

At a meeting organized by the Vietnam Aviation Administration on March 9, Mr. Nguyen Quang Trung, Deputy General Director of Vietnam Airlines, said that if fuel prices increase to about 200 USD/barrel, the airline’s operating costs could double. Then the more the airline flies, the more it loses money.

Industry experts say many Asian airlines are more vulnerable to fuel price fluctuations because they have weaker oil price hedging programs than other airlines in Europe or the United States, especially if they have previously sold tickets at low prices.

“The panic buttons have been activated everywhere,” said June Goh, senior oil market analyst at Sparta Commodities SA, a company that researches and forecasts price trends.

Some low-cost airlines in Southeast Asia are preparing scenarios in which planes may have to be grounded if fuel becomes too expensive or difficult to access.

In Vietnamunder the pressure of skyrocketing Jet A1 fuel prices (exceeding the threshold of 230 USD/barrel), the Aviation Administration on March 26 also proposed that the Ministry of Construction apply a fuel surcharge mechanism for economy class domestic tickets from April 1 to June 30, 2026.

The surcharge is expected to range from 297,000 to 680,000 VND/ticket depending on the flight route. Specifically, the maximum ticket price for the Hanoi – Ho Chi Minh City route can reach nearly 4 million VND, while the Hanoi – Phu Quoc route can reach 4.68 million VND. This situation causes domestic airlines to plan to reduce the frequency of niche routes, focusing on the main route. Currently, more than 60% of international airlines have also adjusted prices or surcharges to offset operating costs, which are increasing by about 40%.

According to updates from many domestic travel agencies, many international airlines have updated fuel surcharge changes from mid-March for routes departing from/arriving in Vietnam.

On March 17, Eva Air adjusted the fuel tax for new/exchanged tickets from March 19, for example, the one-way Vietnam – Taiwan route increased from 42 USD to 60 USD; Round trip increased from 84 USD to 120 USD.

Meanwhile, on March 20, Starlux also adjusted the fuel surcharge for new/changed tickets from March 24, for example, one-way Vietnam to the US/EU from 117 USD to 180 USD, round-trip from 234 USD to 360 USD.

Since the conflict in the Middle East broke out in late February, airlines around the world have taken steps to charge fuel surcharges, pushing up travel costs. Many Vietnamese travel companies announced that most tours departing from April will increase prices, while previously departing tours will keep their prices unchanged due to support from airlines or partners at the destination.