Airlines cut 9.3 million seats as jet fuel prices jump, pushing fares higher

Global airlines have cut 9.3 million scheduled seats for the June 1 to September 30 period asourceser jet fuel prices rose more than 80% since late February, prompting carriers to reduce capacity and raise fares.

The spike in fuel costs, driven by the conflict involving Iran and its knock-on effects on oil markets, has put pressure on airline operating budgets and led to flight cancellations in multiple regions.

Middle East capacity cuts

Reductions have been most pronounced in the Middle East, where airspace closures have disrupted key hubs. Qatar Airways cut two million seats, while Emirates and Etihad Airways reduced capacity by 700,000 and 450,000 seats, respectively.

Fares rise as capacity tightens

Higher costs and fewer available seats have translated into more expensive tickets. Average international airfares from the United States rose 16% year-on-year to $1,101 in the last week of April, while domestic fares increased 24%.

Norway-based aviation consultancy Winair AS estimated that prices on some Europe-to-Asia routes have risen by as much as fivefold.

Demand holds up

So far, demand has been relatively resilient. International passenger demand fell 0.6% worldwide in March from a year earlier, while total demand increased by more than 2%, supported by strong domestic markets.

Some travellers have responded to the uncertainty by booking earlier in an effort to avoid potential further increases in fares and disruptions to flight schedules.