Middle East war has pushed up air fares 24%, research shows

New data reveals a significant spike in air travel costs, attributed to the ongoing Middle East conflict. Economy-class tickets, previously priced at a certain level, now carry an average 24% higher cost compared to this time last year. This trend is detailed in a recent analysis by the consulting firm Teneo.

Report Highlights Key Factors

Teneo’s findings indicate that airspace limitations due to the war have compelled airlines to alter flight routes, thereby consuming more fuel. Concurrently, disruptions in oil supply have contributed to a rise in fuel expenses. The report also notes a reduction in capacity on long-haul routes, typically managed by Gulf-based carriers, which have experienced operational setbacks.

Jet fuel prices have surged from $85-$90 per barrel to $150-$200 in recent weeks. Fuel represents up to a quarter of an airline’s total operating costs, according to the study.

Regional Route Price Increases

The report emphasizes that the most pronounced price hikes have occurred on flights connecting Europe to East Asia. For example, a journey from London to Melbourne in June now exceeds last year’s cost by 76%, while a flight from Hong Kong to London has risen by 72%.

Meanwhile, US media reported on Tuesday that Vice President JD Vance plans to travel to Pakistan for peace discussions. However, Iran has not yet confirmed if they will send a delegation. In the same context, US President Donald Trump stated he would not support extending the ceasefire, which is set to expire on Wednesday.

“There is not much time to reach a deal,” Trump said to CNBC. “If the Iranians secure a mutual agreement with the US, they could find themselves in a very good position.”