PATTAYA, Thailand – Air New Zealand has announced fare increases across all routes, citing a sharp rise in aviation fuel prices linked to the ongoing conflict in the Middle East.
The airline said jet fuel prices have jumped dramatically in recent days from around US$85–90 per barrel to as high as US$150–200 per barrel, forcing the carrier to adjust ticket prices and suspend its earnings forecast for 2026 due to uncertainty surrounding the conflict.
Under the new pricing structure, Air New Zealand has increased one-way economy fares on domestic routes by NZ$10, while short-haul international flights will rise by NZ$20 and long-haul routes by NZ$90.
The airline warned that if fuel prices remain elevated, further fare increases could follow. It also indicated that route networks and flight schedules may be adjusted if necessary to cope with rising operating costs.
The global aviation industry has been grappling with soaring fuel costs and airspace restrictions caused by the conflict, particularly affecting routes between Asia and Europe where airlines have been forced to reroute flights due to airspace closures.
Air New Zealand is among the first major carriers to announce large-scale fare adjustments since the conflict escalated.
Other regional airlines are also seeking government assistance. For example, Vietnam Airlines has reportedly asked the government to temporarily waive environmental taxes on aviation fuel after operating costs surged by 60–70 percent.
The surge in oil prices and restricted airspace has pushed airfares on some routes to record levels, forcing many travelers worldwide to reconsider their travel plans.
In Thailand, the Ministry of Tourism and Sports has warned that if the conflict continues for more than eight weeks, the country could lose nearly 596,000 international visitors, with tourism revenue potentially dropping by about 40.9 billion baht. The impact would likely be felt most strongly in markets from Europe and the Middle East, where long-haul flight prices are rising due to higher fuel surcharges and rerouted flight paths.
Tourism destinations that rely heavily on international arrivals, such as Pattaya, could feel the ripple effects in the coming months. Higher airfares and longer travel routes may discourage some long-haul travelers, particularly from Europe and the Middle East, potentially slowing visitor growth during upcoming holiday periods. Local tourism operators say rising travel costs could influence how long visitors stay and how much they spend while in the city.
However, financial markets showed signs of stabilizing after Donald Trump suggested the conflict could end sooner than expected. Following his comments, global crude oil prices eased from a recent peak of US$119 per barrel to around US$90 per barrel on Tuesday, providing some relief to airline investors.
Despite the slight drop in oil prices, the global tourism industry continues to face uncertainty as airlines cope with higher operating costs and changing flight routes to avoid conflict zones.
