Airlines cut flights, raise fares as fuel costs soar

United Airlines and Lufthansa are implementing major service cuts and fare increases as jet fuel prices have surged from approximately $85 to $90 per barrel to $150 to $200 per barrel following the U.S.-Israeli conflict with Iran. United Airlines CEO Scott Kirby announced ticket prices may need to rise by 15 to 20 percent to offset costs, while Lufthansa Group cancelled 20,000 short-haul flights over the next six months to save 40,000 metric tonnes of fuel. The price surge represents a significant financial hit for carriers, with fuel comprising up to a quarter of operating expenses. Approximately 75 percent of Europe's jet fuel supply originates from the Middle East, making the disruption through the Strait of Hormuz particularly acute. Airlines worldwide are responding with varied measures. Air France-KLM plans to increase long-haul ticket prices by 50 euros per round trip, while KLM cancels 160 flights in Europe. Delta Air Lines is cutting capacity by 3.5 percentage points and raising checked baggage fees, and American Airlines implemented similar increases along with trimming certain economy passenger benefits. Asian carriers including Cathay Pacific, Asiana Airlines, and Korean Air are also slashing flights, with Korean Air entering emergency management mode. In Nigeria, airlines temporarily suspended plans for a nationwide shutdown after the government intervened, though the industry body warns operations remain unsustainable. The European Commission proposed measures under its "AccelerateEU" package to optimize jet fuel distribution and avoid shortages across the region. For travelers, the disruption arrives as summer demand ramps up, with major events including the World Cup expected to strain airports further. Unlike weather-related cancellations, most fuel-related cuts are being made days or weeks in advance, giving passengers more time to adjust. Passenger rights vary significantly by region: the European Union offers strong protections including rebooking and compensation, while the United States and Canada provide more limited guarantees. The Montreal Convention governs airline liability across more than 140 countries. British passengers face a considerably less dire situation, as UK airlines report no current fuel shortages thanks to advance purchasing and hedging practices. However, as hedging arrangements unwind and Gulf hubs remain on the Foreign Office no-go list, sustained higher fares are expected to continue through the year.