Across the aviation industry, airlines have been forced into urgent cost-cutting steps as fuel—typically accounting for between 20% and 40% of operating expenses—becomes significantly more expensive.

Data from last week showed the benchmark European jet fuel price surging to a record $1,838 (£1,387) per tonne, up sharply from $831 prior to the outbreak of hostilities.

Industry analysts caution that passengers are likely to face additional fare increases and further service reductions if the geopolitical tensions persist.

The Gulf region plays a critical role in global fuel supply, providing roughly half of Europe’s aviation fuel imports. Much of this supply transits through the Strait of Hormuz, which Iran has effectively shut down following US and Israeli military actions.

The surge in prices underscores the importance of Middle Eastern refining capacity. Kuwait’s Al-Zour refinery alone contributes about 10% of Europe’s jet fuel imports, according to Energy Intelligence.

Air New Zealand’s planned cancellations are expected to affect services to and from Auckland, Wellington and Christchurch, while routes serving smaller airports are set to remain unchanged.

The carrier, which had already trimmed capacity in recent weeks, said Tuesday that 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 said.

Air India, for its part, said it would revise its domestic fuel surcharge structure, shifting from a flat rate to one determined by flight distance.

The airline also raised international surcharges, citing what it described as "one of the most challenging fuel cost environments that airlines globally have faced in recent years".

Delta Air Lines reported that fuel expenses rose 14% year-on-year in the January-to-March quarter, reaching $2.7bn, in comments to investors on Wednesday. The update came a day after the airline joined other US carriers in increasing checked baggage fees.

With travel demand remaining resilient and fuel prices elevated, Delta said it is considering further fare increases beyond those already implemented. It also plans to cut about 3.5% of passenger capacity, focusing on overnight and midweek flights.

"There's a high sense of urgency to address higher fuel costs and reduce unprofitable flying," chief executive Ed Bastian said.

Elsewhere in Asia, airlines have been scaling back operations and raising ticket prices to manage the pressure. Countries such as Japan and South Korea have been especially exposed due to their reliance on Middle Eastern energy supplies.

China Eastern Airlines announced last week that it would increase domestic surcharges, while Korean Air said it had shifted into emergency management mode.

Globally, carriers are taking similar steps. United Airlines in the US and SAS in Scandinavia are among those reducing services and lifting fares.

Air France-KLM has indicated it will increase long-haul ticket prices, while Cathay Pacific is raising its fuel surcharge.

By contrast, British Airways parent IAG and EasyJet have so far avoided such measures, benefiting from fuel purchases secured at pre-conflict prices.

However, Ryanair chief Michael O'Leary warned Sky News last week that jet fuel availability could begin to tighten as early as May if the situation does not improve.

Analysts told the BBC that rising fares and reduced flight availability are likely to persist in the near term.

"Starting from an already tight market, the current lack of Middle East jet fuel exports is worsening the situation," said Mick Strautmann, an analyst at data firm Vortexa.

"Given global jet fuel exports are currently at their lowest point in four years, the same level of air travel demand will likely not be sustainable if disruptions persist, meaning airlines will likely have to increase prices further, and reduce the number of flights," he said.

He added that this trend will become "more and more likely" as the peak summer travel season approaches in many regions.

Despite the supply constraints, George Shaw, senior insight analyst at trade intelligence firm Kpler, said widespread shortages are not imminent.

"Europe is not close to running out, as jet fuel is produced domestically and generally April should be manageable in terms of stocks," he said, but added that there may be "some localised issues" in May as the drop in imports is "more keenly felt".