March 15, 2026

#national: Airfares could soar as Iran war disrupts global fuel supply

Matthew Tukaki Posted On March 15, 2026

Travellers in Aotearoa could soon face significantly higher airfares as the war involving Iran sends shockwaves through global fuel markets and airline operations.

The escalating conflict in the Middle East has pushed oil and jet fuel prices sharply higher while also disrupting key fuel supply chains. Analysts say the combination of higher fuel costs and supply shortages is already forcing airlines around the world to increase ticket prices and cut flights.

Jet fuel is one of the largest operating costs for airlines, and the sudden surge in prices is being felt across the industry. In recent days, the price of jet fuel has risen dramatically, prompting carriers to introduce fare increases and fuel surcharges on both passenger and cargo flights.

Air New Zealand has already warned that rising fuel costs linked to the conflict could affect ticket pricing and airline schedules. The national carrier has begun adjusting fares and indicated further increases may be necessary if fuel prices remain elevated.

The airline has also announced it will reduce about five percent of its scheduled flights through early May as the fuel price spike ripples through the aviation sector. The cuts amount to roughly 1,100 services and could affect tens of thousands of passengers.

The broader fuel crisis has been worsened by supply disruptions across Asia. China has halted exports of petrol, diesel and aviation fuel amid concerns about domestic supply during the conflict, tightening availability across the region and placing additional pressure on international markets.

Global oil markets have also been shaken by the conflict, particularly around the Strait of Hormuz — one of the world’s most important oil shipping routes. Any disruption there can affect a significant share of the world’s energy supply, sending prices higher and increasing costs for industries that rely on fuel.

As a result, airlines across Asia and the Pacific are raising fares, particularly on long-haul routes where fuel costs make up a large share of the total ticket price. Some industry analysts say airfares could rise by 10 to 15 percent in the short term if fuel markets remain volatile.

The rising costs are not limited to passenger travel. Air freight and shipping companies are also increasing fuel surcharges, meaning the cost of transporting goods could rise as well — potentially adding further pressure to living costs.

For travellers in New Zealand, the impact could become increasingly visible in the months ahead as airlines adjust schedules, increase ticket prices and attempt to manage the rapidly changing fuel market while the conflict continues.