Major airline cancels flights and hikes prices – urgent message sent to customers

Two airlines have said they will cut the number of their flights and raise jet fuel prices as the war in the Middle East continues. Air India and Air New Zealand made the announcement as they try to fight the rising cost of fuel affected by the war and the Strait of Hormuz blockade.

With a message on its website, Air India said: “Following the Ministry of Petroleum & Natural Gas’ and Ministry of Civil Aviation’s decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance‑based grid as follows, effective from April 8.

“At the same time, in the absence of any such mitigations on international ATF prices, the Air India group will be implementing more significant changes to fuel surcharges,” the company added, saying “the global average jet fuel price rose to USD 195.19 per barrel for the week ending 27 March 2026, up from USD 99.40 at the end of February, recording a surge of close to 100%”

Air India also said its fuel surcharge on its domestic flights will change from a flat fee to one based on the distance of the flight, as they experience “one of the most challenging fuel cost environments that airlines globally have faced in recent years”.

As the BBC reported, Air New Zealand’s cancellations are expected to hit routes in and out of Auckland, Wellington, and Christchurch, with flights to smaller airports unchanged.

The airline already cut some flights last month. On Tuesday the “vast majority” of customers affected by the cancellations were being offered alternative flights on the same day. “Like airlines globally, we’re experiencing jet fuel prices that are more than double what they would usually be” a spokesperson quoted by the BBC said.

The BBC also reported British Airways owner IAG and EasyJet have been able to hold off on either measure so far as they are buying their fuel at a price fixed before the war began. However, Ryanair Michael O’Leary told Sky News last week that jet fuel supplies could start to be disrupted if the war goes on.

Average petrol prices have climbed to nearly 155p a litre as costs continue to rise amid the Iran conflict – but experts suggest “we’re likely close to the peak if the ceasefire holds”. Though one cautioned “it’s still not impossible for fuel to reach £2 per litre, even with the prospect of peace”.

Petrol prices have reached 154.65p a litre on average across the UK – almost 20p a litre higher than at the outbreak of the war. This represents the highest level since October 2023 and marks a rise of more than 17 percent since the conflict began six weeks ago.