CALGARY — Airlines are beginning to raise ticket prices and fuel surcharges as the soaring cost of jet fuel — driven by a widening conflict in the Middle East — ripples through the global aviation industry.CBC News reports Canadian carrier Air Transat confirmed it has already increased charges on some routes, particularly flights to Europe, while Air Canada says it is adjusting ticket prices to reflect the rising cost of fuel.Speaking during the company’s first-quarter earnings call Wednesday, Air Transat chief financial officer Jean-François Pruneau said the airline has incorporated higher fuel surcharges into the total price of tickets to Europe.“We have increased fuel surcharges on Europe. However, this is blended in the total price,” Pruneau told investors.The airline is also raising fares during peak travel periods and on routes where it faces less competition.“What we’re also doing is currently raising fares on peak travel dates and routes where we see less competition, where we have more flexibility,” he said.Air Canada says it is taking a similar approach. In a statement to CBC News, a company spokesperson said ticket pricing “has been and continues to be adjusted” in response to rising fuel costs.The price increases follow a sharp spike in global jet fuel prices after the United States and Israel launched attacks on Iran on February 28, sparking a regional war that has disrupted oil supply and driven energy prices higher.Several international airlines have already introduced or expanded fuel surcharges — an extra fee added to ticket prices to cover unexpected fuel costs.Hong Kong-based Cathay Pacific announced overnight that fuel surcharges will now be included on all passenger tickets. For airfare purchased in Canada, the surcharge will double from $101 to $202.60 starting March 18.Other carriers are also raising fares. Air New Zealand, Qantas Airways, and Scandinavian Airlines have all announced ticket price increases, while Japan Airlines said it will wait until April 1 before deciding whether to change its surcharge levels as it reviews fuel costs over a two-month period..Air Canada flight attendants’ tentative deal, no penalty for illegal strike, ‘ground pay’.Some airlines are partially shielded from the sudden price spike through fuel hedging programs that lock in prices in advance. Lufthansa and Ryanair have both confirmed they use such systems to limit short-term exposure to volatile oil markets.Air Transat CEO Annick Guérard noted that tickets already sold cannot be repriced, meaning the company must carefully balance fare increases with demand.If fares were raised too aggressively, she warned, it could lead to fewer bookings.To manage costs, the airline is also tightening spending across the company to offset the impact of higher fuel prices.In an email to CBC News, an Air Transat spokesperson said the airline recently increased surcharges by $25 on flight segments departing Canada and by €15 — roughly $23.50 — on flights leaving Europe.Fuel is typically the single largest operating expense for airlines, and prices have surged dramatically since the conflict began.According to data from the International Air Transport Association, jet fuel prices jumped 58.4% between February 27 and March 6, rising from US$99.40 to US$157.41 per barrel.Other Canadian airlines say they are closely watching the situation.A spokesperson for WestJet said the crisis in Iran has already increased the cost of operating flights and warned that “further pricing adjustments may be needed.”Meanwhile, Porter Airlines said it is too early to determine how the spike in fuel costs will affect ticket prices. The carrier noted it does not hedge fuel prices and does not operate flights to the Middle East, though it is monitoring the situation closely.With oil markets still volatile and the conflict unresolved, travellers could face higher airfares in the weeks ahead as airlines pass along rising fuel costs.
