Airlines Raise Fares and Cut Flights Amid Jet Fuel Surge

Jet fuel prices surged to US$197 per barrel in late March 2026, driven by escalation of conflict in the Middle East and war in Iran. In response, Cathay Pacific announced a 34% increase in fuel surcharges effective April 1, stating that network operations would be unsustainable without such mitigation. Other carriers, including Singapore Airlines, Scoot, Cebu Pacific, and Thai Airways, have also raised prices, while United Airlines CEO Scott Kirby warned airfares could climb by 20% if costs remain elevated.

Operational cuts have followed the price spikes. United Airlines plans to trim approximately 5% of its scheduled flights in mid-2026, and SAS Scandinavian Airlines cancelled roughly 1,000 flights in April. In the Pacific, T'way Air and Jeju Air suspended services to Saipan, and Philippine Airlines cancelled its Cebu-Guam route. Local officials in the Northern Mariana Islands noted that these external pressures are hindering air service recovery and threatening regional economic stability.

Government and industry bodies are taking emergency measures. The Indonesian National Air Carriers Association called for a 15% surcharge increase and a revision of domestic fare caps. In the Philippines, President Ferdinand Marcos Jr. declared a state of national energy emergency to address potential fuel scarcity and risks to the global energy supply.