Global airlines plunged deeper into crisis on Tuesday as rising fuel costs and supply disruptions forced major carriers to reassess operations. Qantas Airways warned of surging expenses, while Lufthansa signaled possible flight groundings and Virgin Atlantic highlighted an impending fuel shortage. The problem stems from the ongoing Iran conflict, which has sharply constrained jet fuel availability.
The war has severely disrupted key air routes between Asia and Europe, particularly those relying on Persian Gulf hubs. Consequently, airlines have rerouted flights, increased fares, and introduced fuel surcharges. Since US-Israeli strikes on Iran began on February 28, carriers have also reduced routes to manage costs. Meanwhile, Qantas delayed its planned share buyback, emphasizing the financial strain caused by volatile fuel prices.
pressure on fuel supplies continues to mount. Lufthansa CEO Carsten Spohr warned that kerosene shortages will likely persist throughout the year, driving prices higher. Although the airline has not yet grounded aircraft, Spohr stated that such measures may become unavoidable, especially as fuel availability tightens at several Asian airports. Similarly, South Korea’s T’way Air plans temporary unpaid leave for some cabin crew, reflecting early workforce reductions across the sector.
Despite a two-week ceasefire, challenges remain unresolved. The Strait of Hormuz stays closed, removing a significant portion of global oil and gas supplies from the market. As a result, jet fuel prices have more than doubled, now accounting for a growing share of airline operating costs. Analysts warn that ongoing volatility may push weaker airlines out of the market, potentially triggering industry consolidation in the months ahead.
