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Finance

European airlines warn of higher fares as fuel hedges unwind

Published by Global Banking & Finance Review

Posted on March 19, 2026

1 min read

· Last updated: April 1, 2026

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European airlines warn of higher fares as fuel hedges unwind

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BRUSSELS, March 19 (Reuters) - Major European airlines warned of rising fares if the surge in fuel prices stemming from the Iran conflict persists for months and urged passengers to book early to

European Airlines Warn of Higher Fares as Fuel Prices Surge and Hedges Unwind

Impact of Rising Fuel Prices on European Airlines

Airlines Warn of Fare Increases

BRUSSELS, March 19 (Reuters) - Major European airlines warned of rising fares if the surge in fuel prices stemming from the Iran conflict persists for months and urged passengers to book early to avoid extra costs as the industry's fuel hedging strategies start to unwind.

Lufthansa's Response to Disruption

Lufthansa Group CEO Carsten Spohr, speaking alongside other airline leaders in Brussels, said it had added 40 flights to Asia to compensate for disruption to Gulf carriers but demand could be affected by higher fuel charges and fares.

Reporting Credits

(Reporting by Joanna Plucinska, Tim Hepher and Louise Heavens)

Key Takeaways

Surging jet fuel prices—spurred by the Iran conflict—are straining airlines’ hedging protections, raising risk of fare increases if the situation persists. (apnews.com)
Lufthansa Group, despite adding 40 flights to Asia to offset disruption of Gulf routes, acknowledges that higher fuel costs could dampen demand and lead to increased ticket prices. (apnews.com)
European airline fuel hedging strategies vary: carriers like easyJet, Ryanair, and Air France‑KLM hold high hedge ratios, while others—including Lufthansa—are becoming more vulnerable if high prices continue. (hydrocarbonprocessing.com)

References

Frequently Asked Questions

Why are European airlines warning of higher fares?

European airlines warn of higher fares if fuel prices remain high due to the Iran conflict and as their fuel hedging strategies unwind.

What is fuel hedging and how does it affect airline fares?

Fuel hedging allows airlines to lock in fuel prices in advance, but as these hedges unwind, airlines may face higher fuel costs that can increase fares.

How are airlines responding to the impact of fuel prices?

Some airlines, like Lufthansa, are adding flights to Asia to offset disruptions but caution that demand may decrease if higher fuel charges and fares persist.

What advice are airlines giving to passengers regarding fares?

Airlines are urging passengers to book early to avoid potential extra costs if fuel surcharges increase.

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European airlines warn of higher fares as fuel hedges unwind

European Airlines Warn of Higher Fares as Fuel Prices Surge and Hedges Unwind