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Airlines Face Jet Fuel Price Crisis as Air NZ's Share Price Plummets
Air New Zealand halted its FY2026 profit forecast and raised fares by NZ$10 to NZ$90 due to jet fuel prices spiking up to $200 a barrel amid Middle East conflict.
- On March 10, Air New Zealand suspended its FY2026 earnings guidance because jet fuel volatility invalidated assumptions made less than two weeks ago and warned it expects a meaningful impact on second-half earnings.
- The Middle East conflict has driven oil prices sharply higher, with Brent crude jumping over 15% and the crack spread widening from about $22 to as high as $115, increasing airline costs, while airspace closures lengthen routes.
- Soaring jet fuel benchmarks have reached $150 to $200 a barrel, while Air New Zealand implemented NZ$10 domestic, NZ$20 short‑haul and NZ$90 long‑haul fare increases.
- The carrier warned that service reviews could harm regional centres, with Nelson mayor Nick Smith stating 'The loss of an air service can have a body blow impact on regional centres'.
- Analysts warn that some low‑margin budget airlines could fail if the current environment persists for more than three months, while Thailand's Ministry of Tourism forecasts a loss of 595,974 tourists and 40.9 billion baht .
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Airlines begin to hike fares due to higher fuel prices, shares stabilise
March 10 : Air New Zealand said on Tuesday it has raised fares due to the Middle East conflict and may take further pricing action, underscoring how global airlines will seek to pass on the costs of higher oil prices to passengers. Jet fuel prices, which were around $85 to $90 per barrel prior to the conflict
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Coverage Details
Total News Sources25
Leaning Left6Leaning Right3Center8Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 35%
C 47%
R 18%
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