Dollars & Sense: Airlines, passengers feel the pinch from the war in the Middle East
By Donovan Myrie
Published on April 23, 2026.
The cost of aviation fuel has increased significantly due to the Middle East war, causing airlines to raise ticket prices and increase baggage fees. Qantas is increasing its fuel bill to over $3 billion (AUD), and Air New Zealand is cutting unprofitable domestic and international routes. Hong Kong-based Cathay Pacific added fuel surcharges twice in a 30-day period. Norwegian low-cost airline has eliminated international service on three routes. KLM cancelled over 150 flights in the last month due to rising fuel prices. Fatih Birol, Executive Director of the International Energy Agency, warned of significant flight cancellations if oil supplies from the Middle Eastern were not restored. Since the war began, the U.S. and Canada have been exporting more oil and refined fuels than they imports.
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