April 10 (Reuters) - A surge in jet fuel prices driven by the U.S.-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise financial outlooks. Jet fuel
Factbox-Price hikes, outlook cuts - What airlines are doing as fuel costs surge
Airline Responses to Surging Jet Fuel Prices
April 23 (Reuters) - A surge in jet fuel prices driven by the U.S.-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise their financial outlooks.
Jet fuel prices have soared from $85 to $90 per barrel to $150 to $200 per barrel in recent weeks, a financial hit for an industry where fuel accounts for up to a quarter of operating expenses.
Below is a list of how airlines are responding, in alphabetical order:
AEGEAN AIRLINES
Financial Impact
The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a "notable impact" on its first-quarter results.
AIRASIA X
Flight Cuts and Surcharges
The Malaysian airline's executives said the company had cut 10% of flights across the group, with a surcharge of about 20% on fuel in general.
AIR CANADA
Route Adjustments
Canada's largest carrier plans to trim four of its 38 daily flights to New York due to higher fuel prices. The four flights to JFK International Airport will be cut from June 1 to October 25, 2026.
AIR FRANCE-KLM
Ticket Price Increases
The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros ($59) per round trip.
KLM Flight Cancellations
The group's Dutch arm KLM said on April 16 it would cancel 160 flights in Europe in the coming month due to rising fuel costs.
AIR INDIA
Surcharge Revisions
The Indian carrier said it would revise its fuel surcharge from a flat domestic surcharge to a distance-based grid. It said surcharges on international routes did not compensate for the exponential rise in fuel prices.
AIR NEW ZEALAND
Flight Reductions and Fare Hikes
The airline said on April 7 it would slash flights through May and June and hike fares, having been one of the first to announce broad increases to ticket prices when the conflict broke out. It also suspended its full-year earnings forecast due to fuel market volatility.
AIR TRANSAT
Capacity Reductions
The Canadian airline said it would reduce planned capacity by 6% from May until October this year, with cuts expected on routes to Europe and the Caribbean and its service to Cuba remaining suspended until October.
AKASA AIR
New Fuel Surcharges
India's Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.
ALASKA AIR
Profit Forecast Withdrawal
The carrier withdrew its full-year profit forecast and warned of a steep hit to second-quarter earnings as the sharp rise in fuel prices puts pressure on margins. It has also trimmed capacity in some markets.
AMERICAN AIRLINES
Baggage Fee Increases
The U.S. carrier said it would hike checked baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag on domestic and short-haul international flights. It also trimmed certain benefits for economy passengers.
ASIANA AIRLINES
Flight Reductions
The South Korean airline will slash 22 flights between April and July due to the fuel cost increase, Newsis reported.
CATHAY PACIFIC
Debt Financing
The airline raised HK$2.08 billion ($265.58 million) from three-year fixed-rate notes at a yield of 3.78%, according to a term sheet seen by Reuters on Wednesday.
CEBU AIR
Pricing and Network Review
The Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.
CHINA EASTERN AIRLINES
Domestic Fuel Surcharges
The airline said it would raise fuel surcharges for domestic flights from April 5, with flights of 800 km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800 km.
DELTA AIR LINES
Capacity and Fee Adjustments
Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags in an attempt to offset soaring jet fuel costs, with an increase of $10 on first and second checked bags and a $50 increase on the third.
Profit Forecast
The U.S. airline pulled all planned capacity growth for the current quarter and forecast profit below Wall Street expectations.
EASYJET
Loss Warnings
EasyJet warned of a bigger half-year pre-tax loss of between 540 million and 560 million pounds ($729 million and $756 million), including 25 million pounds in extra fuel costs in March.
FRONTIER AIRLINES
Forecast Review
The U.S. airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.
GREATER BAY AIRLINES
Fuel Surcharge Increases
The Hong Kong-based company said it would raise fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes.
HONG KONG AIRLINES
Surcharge Adjustments
The airline said it would raise fuel surcharges by up to 35% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 from HK$284.
IAG
Hedging Strategy
British Airways-owner IAG said in March it did not plan to increase ticket prices immediately, as it had hedged much of its fuel for the short- to medium-term.
INDIGO
Fuel Charges Introduction
India's biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe.
JETBLUE AIRWAYS
Financial Stability Measures
Joanna Geraghty, CEO of the U.S.-based low-cost carrier, told employees in a memo seen by Reuters that the carrier would not consider bankruptcy this year, even as rising jet fuel costs threaten its financial recovery. The company entered a $500 million debt financing agreement, according to an SEC filing.
KOREAN AIR
Emergency Management Mode
The South Korean carrier will enter emergency management mode from April, as rising oil prices weigh on costs, a source with knowledge of the matter told Reuters.
LUFTHANSA
Short-Haul Flight Reductions
The airline group said 20,000 short-haul flights would be removed from its schedule through October, equivalent to about 40,000 metr
