Chinese Airlines Raise Fuel Surcharges as Iran War Pushes Global Flight Costs Higher

Several major Chinese airlines have announced significant increases to their fuel surcharges, becoming the latest carriers worldwide to pass on the rising cost of jet fuel to passengers. The moves come as the ongoing US-Israel war with Iran continues to disrupt global oil supplies, sending fuel prices to levels not seen in years and forcing airlines across every continent to raise fares, add surcharges, and in some cases cut flights altogether.

China's biggest carriers Air China, China Southern, and its subsidiary Xiamen Airlines, have all confirmed they will raise fuel surcharges on domestic flights from Sunday. According to statements issued by the airlines, surcharges on flights of up to 800 kilometers will increase by 60 yuan, equivalent to approximately $8.70, while surcharges on longer domestic flights will rise by 120 yuan. Budget carriers Spring Airlines and Juneyao Airlines have also announced similar surcharge increases.

The increases apply primarily to domestic flights within China for now, with international flight surcharges subject to separate calculations under China's aviation regulatory system. Analysts have noted that while carriers hedge a portion of their fuel costs, their margins could still be significantly affected if prices remain elevated.​​​​​​​

The root cause is the Iran war, which began on February 28, 2026. Iran's effective closure of the Strait of Hormuz, the narrow waterway through which approximately one-fifth of the world's oil supply passes, has caused crude oil prices to surge sharply. A barrel of Brent crude, the global benchmark for energy markets, has risen to around $100 since the US and Israel attacked Iran on February 28. Jet fuel, which is processed from crude oil, has followed closely. Jet fuel typically accounts for around a quarter of an airline's total operating costs, making it one of the single biggest expenses in the industry.

The surcharge increases from Chinese carriers is the latest development in what has become a worldwide aviation fuel crisis. Carriers across every major region have now either raised fares, introduced new surcharges, or announced flight cuts in response to the same underlying problem.​​​​​​​

In Asia, Hong Kong's Cathay Pacific raised its fuel surcharge on all flights by 34% last month as a direct result of the conflict. AirAsia temporarily raised ticket prices and surcharges across its network. Thai Airways has warned passengers to expect fare increases of between 10% and 15%. Japan Airlines and ANA have both announced plans to raise international surcharges from June 2026.​​​​​​​

In Europe, Air France-KLM announced that round-trip economy fares on long-haul flights could rise by approximately 50 euros. Scandinavian carrier SAS confirmed it would cancel at least a thousand flights in April due to surging fuel costs, on top of several hundred already cut in March. Lufthansa is also preparing capacity cuts and aircraft groundings as it evaluates the full financial impact of the conflict.

In the United States, JetBlue has already raised checked baggage fees by up to $9. The CEOs of Delta Air Lines, American Airlines, and United Airlines have reported that higher jet fuel prices have already added approximately $400 million in combined operating costs. Willie Walsh, in his capacity as IATA Director General, warned that airline ticket prices could rise by as much as 9% globally if high fuel prices persist.

The global aviation industry is going through one of its most challenging periods in years, and the situation is changing fast. At Mundo Trip, we track every development across all major airlines and routes, so you always have the clearest and most up to date picture before you book. Whether you are planning a trip to Asia, Europe, or anywhere else in the world, our team is here to help you navigate the current environment and find the best available fares. Follow us for the latest travel news and get in touch whenever you are ready to plan your next trip.