Beyond cutting back on driving, households are slicing deeper into their budgets, with some even forgoing healthcare

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As soon as petrol prices started to rise in response to the Middle East conflict, many Australians – already grappling with high living costs – changed their spending habits.

Beyond cutting back on driving, households are slicing deeper into their budgets, with some even forgoing healthcare.

SINGAPORE: While the surge in the price of jet fuel has caused air ticket prices to soar, Asian airlines are reporting an increased demand as flyers are now choosing to transit through Asia rather than countries in the Middle East.

The increase in jet fuel prices has resulted from the war in the Middle East, which began on Feb 28 when the United States and Israel started to bomb Iran. Iran has all but closed the Strait of Hormuz, a key chokepoint through which around 20% of the world’s energy supply passes, leaving many countries scrambling for fuel.

Wary of getting close to conflict areas, of cancelled or affected flights, many travellers are looking to routes considered to be safer. Singapore Airlines, Cathay Pacific, Korean Air, and even Qantas Airways have reported strong ticket sales in March.

Reuters quoted Cathay Chief Customer and Commercial Officer Lavinia Lau as saying on April 17, “We have … mounted additional flights and capacity to Europe in March and April to cater for an upsurge in market demand as passengers prioritised alternative routings.”

Singapore Airlines saw the sharpest gain among all regions last month in terms of the percentage of seats filled. For its flights to Europe, SIA had 93.5% seats filled, an increase from 79.7% at the same time last year, saying in a statement that “capacity through Middle East air hubs was affected by the ongoing Middle East conflict.”

Both Cathay Pacific and Singapore Airlines have announced that it added flights to Europe amid the uptick in demand.

Korean Air, meanwhile, saw its operating income increase by 47.3% to 517 billion won (approximately S$446.6 million), due to “increased demand between Europe and Asia due to the Middle East war.” The airlines’ European passenger revenue is now up by nearly one-fifth from March 2025.

Whether travel demand across Asia will be strong will be tested in May and July, during the summer school holidays for India and China, respectively, reported the South China Morning Post. It quoted an industry expert as saying, “Both will be watched closely as barometers of the strength, or otherwise, of regional travel.”

Transit hubs in the Gulf

Transit hubs in the Gulf, such as Dubai International Airport, Hamad International Airport in Doha, and Zayed International Airport in Abu Dhabi, have all been affected by the conflict, which quickly spread to various countries in the region.

However, Emirates, Qatar Airways, and Etihad Airways have been restoring capacity in the past weeks, and are now at 60% of pre-February 28 flights. /TISG

Read also: SIA, Scoot yet to impose fuel surcharges even as global airlines move to raise fares

This article (Airlines in Asia see higher demand as travellers reroute from Gulf hubs) first appeared on The Independent Singapore News.

ONS says sales rose by 0.7% in March, spurred by motorists filling their tanks and sunny weather helping retailers

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Motorists stocking up on fuel helped to push up retail sales in Great Britain last month as the Iran war prompted “panic at the pumps” amid rapid rises in petrol and diesel prices.

The Office for National Statistics (ONS) said that the volume of retail sales rose by 0.7% last month, well above analysts’ forecasts of just 0.1%.

Annual March rate shows impact of Iran war, which also pushed up cost of food and air fares

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UK inflation accelerated to 3.3% in March after the Iran war triggered the biggest jump in fuel prices for more than three years.

In the first official snapshot of the damage to living standards in Britain from the US-Israeli war on Iran, the Office for National Statistics (ONS) said the consumer prices index increased last month from a rate of 3% in February. The rise matched the forecasts by City economists.

The trend has been accelerated by the US-Israel war on Iran, leaving households – and cafe owners – glum, surveys suggest

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For many coffee drinkers, takeaway orders are changing from a habitual purchase to an occasional treat, as elevated petrol prices and other living costs leave households feeling glum.

This rapid shift in behaviour has disappointed cafe owners and surprised economists, raising an uneasy question: if takeaway coffee sales are falling, is the economy next?

SINGAPORE: Hawker meals across Singapore could soon become more expensive, as stallholders grapple with mounting cost pressures driven by higher ingredient prices, energy costs and fuel-related surcharges.

Some vendors have already raised prices by between 50 cents and S$1, while others say increases may be inevitable if current conditions persist. The squeeze has been intensified by global factors, including the ongoing conflict in the Middle East, which has pushed operating expenses higher and cut into already thin profit margins.

CNA reported that at Singapore’s largest hawker centre, the Chinatown Complex Food Centre, more than 220 stallholders have been feeling the strain in recent weeks. According to the chairman of the Chinatown Complex Hawkers’ Association, Mr Cornelius Tan, operating costs have climbed by an additional 10 per cent over the past month.

Mr Tan told CNA that hawkers are being hit from multiple angles. Beyond rising ingredient costs, higher delivery fees driven by fuel surcharges are compounding the burden. As most hawkers rely on multiple suppliers for items such as poultry, vegetables and other essentials, the added charges can stack up quickly.

“With multiple deliveries each day, if every supplier imposes a fuel surcharge, the effect multiplies,” he told CNA, adding that hawkers are now paying more for the same quantity of raw materials than before.

The association has been asked to inform authorities if gas prices spike significantly, but many stallholders say the pressure is already acute. Some report profit declines of up to 20 per cent, leaving little room to absorb further increases without passing costs on to customers.

Similar challenges are being reported at Bedok Food Centre, where hawkers are also contending with reduced footfall. Several stalls there have seen daily takings fall by at least 20 per cent, compounding the impact of higher expenses.

While many Bedok vendors have so far resisted raising prices, the local hawkers’ association is calling for temporary relief measures. Its chairman, Hajjah Roziah Adon, told CNA that rental discounts could help businesses stay afloat during this difficult period.

Industry groups are also stepping in to ease the strain. The Federation of Merchants’ Associations of Singapore has been working with hawkers and suppliers to keep costs manageable, including expanding bulk purchasing efforts to secure better pricing.

In addition, hawkers are being encouraged to explore alternative revenue streams, such as building a stronger online presence and tapping into government funding schemes aimed at supporting grassroots initiatives and preserving hawker culture.

This article (Hawkers feel the squeeze as Middle East conflict drives up costs in Singapore) first appeared on The Independent Singapore News.