Airlines raise fees and cut flights as volatile fuel costs surge amid Middle East conflict
Major airlines are increasing baggage fees and reducing flight schedules as jet fuel prices swing wildly due to Middle East tensions affecting oil supplies.
Airlines worldwide are raising fees and cutting flight schedules as volatile jet fuel prices create uncertainty following escalated conflict in the Middle East and disruptions near the Strait of Hormuz, a critical oil shipping route.
Oil prices have fluctuated dramatically in recent weeks, reaching $119 per barrel before dropping below $95 during a brief ceasefire that temporarily reopened the Strait of Hormuz, then climbing back toward $100 as the truce faltered. Iran has repeatedly closed the strategic waterway in response to military actions in the region.
The price volatility has prompted major U.S. carriers to increase checked baggage fees, with Delta Air Lines, United Airlines, Southwest Airlines and JetBlue all implementing higher charges. Delta CEO Ed Bastian said elevated fuel costs are expected to add $2 billion in operating expenses for the second quarter alone. United CEO Scott Kirby noted that sustained high fuel prices could mean an additional $11 billion in annual costs, more than double the airline's best-ever profit year.
According to the International Air Transport Association, average global jet fuel prices rose to $209 per barrel last week, up from approximately $99 at the end of February. International carriers have also adjusted pricing, with Hong Kong's Cathay Pacific raising fuel surcharges by 34% and Air India adding up to $280 in fees on some flights.
Airlines are reducing flight schedules to manage costs, with BNP Paribas estimating global April schedules have been cut roughly 5% compared to earlier plans. United is trimming about 5% of planned flights, focusing cuts on less profitable routes and red-eye flights, while Delta has scrapped plans to add capacity in June.
The changes are affecting travelers differently, with budget airlines and price-conscious customers expected to feel the impact most acutely. Industry experts note that larger carriers have more flexibility through dynamic pricing and aircraft swapping, while budget carriers operating on thin margins have fewer options to absorb increased fuel costs.