BUSINESS

Airlines Slash Routes as Fuel Prices Soar Amid Middle East War

Published: Apr. 15, 2026 10:42 p.m. GMT+8

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Aircraft from various airlines sit on the apron and runway at Shanghai Hongqiao Airport. Photo: VCG

Chinese and other Asian airlines have begun canceling flights to cope with a surge in jet fuel prices driven by the conflict in the Middle East.

The capacity reductions underscore the severe financial strain on the global aviation sector, as fuel costs have nearly doubled since the conflict began, forcing carriers to abandon unprofitable routes even as they raise fares and surcharges.

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Asian airlines canceling flights due to jet fuel prices nearly doubling to $197.8/barrel (week ending Apr 10) from $99.4 (Feb 27), driven by Middle East conflict.
Fuel is 30% of costs; breakeven at $72-76/barrel, forcing cuts on unprofitable routes despite fare hikes.
Examples: AirAsia suspends Shanghai-Bangkok; Cathay Pacific cuts 2% flights (May-Jun); >50% China-Oceania flights canceled in April.

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Who’s Who

S&P Global: According to S&P Global energy data, the average global jet fuel price reached $197.8 a barrel in the week ending April 10, nearly double the $99.4 a barrel recorded in the week of Feb. 27 before the war began.

Cirium: Cirium, an aviation analytics firm, estimated the global airline industry’s jet fuel breakeven point at $72-$76 per barrel. Above this, the sector faces losses.

Spring Airlines Co. Ltd.: Spring Airlines Co. Ltd., a Shanghai-listed budget carrier, stated in its 2025 annual earnings call on April 14 that fuel surcharges have not significantly impacted passenger demand or presales, supported by strong Q4 2025 and Q1 2026 markets. It plans minor adjustments to unprofitable off-season flights but notes current reductions remain small.

AirAsia X: AirAsia X, Asia's largest low-cost carrier, will suspend its Shanghai-Bangkok route starting April 17 due to surging jet fuel prices from the Middle East conflict.

Thai AirAsia: Thai AirAsia will halt its Xi’an-Bangkok service after May 11 due to surging jet fuel prices from the Middle East conflict.

Cathay Pacific Airways Ltd.: Cathay Pacific Airways Ltd. will cancel about 2% of passenger flights from May 16 to June 30, mainly regional short-haul routes and some to Australia, South Asia, and South Africa, due to high fuel prices. Fuel surcharges are insufficient. Its subsidiary HK Express will cut 6% of flights from May 11 to June 30.

HK Express: HK Express, low-cost subsidiary of Cathay Pacific, will cancel about 6% of its flights between May 11 and June 30 due to high jet fuel prices from the Middle East conflict. (32 words)

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