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Airlines in Asia see higher demand as travellers reroute from Gulf hubs

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.

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© Photograph: Bryan Smith/ZUMA Press Wire/Shutterstock

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Taiwanese airlines to hike fuel surcharges 157% on international flights

By: AFP
Taiwan China Airlines featured image

Taiwanese airlines will raise their fuel surcharges on international flights by 157 percent on Tuesday, as the Middle East conflict sends global oil prices soaring.

China Airlines plane.
China Airlines plane. File photo: Jeffry Surianto, via Pexels.

Surcharges on short-haul flights will increase by US$27.50 to US$45 and US$71.50 to US$117 for longer flights, the Civil Aviation Administration (CAA) and transportation ministry said on Wednesday.

China Airlines and Eva Air confirmed that passengers will be affected by the hikes from April 7.

Ticket prices for domestic routes will increase by an average of around US$3, CAA director-general Ho Shu-ping told parliament.

“In response to international trends, prices often go up and down, so we need to make appropriate adjustments to reflect that,” Ho said.

The move comes as the war in the Middle East, and Iran’s effective closure of the crucial Strait of Hormuz, have sent crude prices skyrocketing.

A barrel of Brent oil, the benchmark reference for energy markets, which had fallen back below US$100 Wednesday, surged seven percent to hit US$108.15.

Several Chinese airlines, including national carrier Air China, also plan to raise their fuel surcharges from Sunday.

Other airlines, including Air France-KLM, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices.

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Chinese airlines to hike fuel surcharges on domestic flights

By: AFP
China Air featured image

Several Chinese airlines, including national carrier Air China, said they will raise their fuel surcharges on domestic flights from Sunday as the war in the Middle East drives up oil prices globally.

Air China's Boeing airplane.
Air China plane. Photo: Jeffrey S.S./Pexels.

Air China, China Southern and its subsidiary Xiamen Airlines said in statements that they will increase surcharges on flights of up to 800 kilometres (500 miles) by 60 yuan (US$8.70), and 120 yuan for longer flights. Spring Airlines and Juneyao Airlines also announced fuel surcharge hikes.

International flights will be subject to the system’s calculations, according to statements issued on Wednesday that did not mention the conflict.

The move comes as the war in the Middle East, and Iran’s effective closure of the crucial Strait of Hormuz, have sent crude prices soaring.

A barrel of Brent oil, the benchmark reference for energy markets, has risen to around US$100 since the United States and Israel attacked Iran on February 28, leading Iran to retaliate against oil installations in several Gulf states.

Hong Kong carrier Cathay Pacific ramped up its fuel surcharge on all flights last month by 34 percent as a result of the conflict.

Several other airlines, including Air France-KLM, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices.

Many airlines have also stopped serving destinations in the Middle East over security concerns.

Analysts have said that, while carriers all hedge a portion of their fuel costs, their margins could still be affected.

Chinese carriers transported around 770 million passengers in 2025, an increase of 5.5 percent on the previous year, according to official reports, while international passenger traffic jumped by 21.6 percent.

Passenger traffic was expected to rise to 810 million, according to the Civil Aviation Administration of China.

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