Wellington: Airlines have begun raising fares following soaring fuel prices. Air New Zealand announced a fare increase across all routes today, citing a surge in aviation fuel prices due to conflicts in the Middle East.

According to Thai News Agency, Air New Zealand stated that fuel prices have risen from the previous level of US$85-90 (approximately 2,700-2,860 baht) per barrel to US$150-200 (approximately 4,770-6,350 baht) per barrel in recent days. As a result, the airline has suspended its 2026 earnings forecast due to the uncertainty surrounding the war situation.

With this fare increase, Air New Zealand has raised one-way economy class airfares on domestic routes by NZ$10 (approximately 190 baht), short-haul international routes by NZ$20 (approximately 380 baht), and long-haul routes by NZ$90 (approximately 1,690 baht). The airline also warned that if fuel prices remain high, further price increases may be necessary, along with adjustments to its route network and flight schedules.

Although airfares on routes between Asia and Europe have soared due to airspace closures and passenger capacity restrictions, Air New Zealand was one of the first airlines to announce significant fare increases since the war began. While other airlines in the region, such as Vietnam Airlines, have petitioned the government for exemptions from environmental taxes on aviation fuel to sustain operations after costs soared by 60-70 percent.

Soaring oil prices coupled with airspace closures due to the war are driving airfares on some routes to record highs, forcing many people to reconsider their travel plans. In Thailand, the Ministry of Tourism and Sports predicts that if the conflict lasts longer than eight weeks, the country could lose over 595,974 foreign tourists and approximately 40.9 billion baht in tourism revenue. The European and Middle Eastern markets are particularly affected by the closure of airspace and increased fuel surcharges, leading to significantly higher airfares on long-haul routes.

However, the situation in the capital markets is beginning to show signs of stabilization after President Donald Trump expressed the view that the war may end soon. This caused world crude oil prices to fall from their peak of $119 (approximately 3,780 baht) per barrel to around $90 (approximately 2,860 baht) per barrel on Tuesday, easing some of the concerns of investors in the airline sector. Nevertheless, the global tourism industry as a whole still faces challenges from higher travel costs and flight path adjustments to avoid conflict zones.