Asian Airlines Scramble as Fuel Surge Triggers Emergency Measures
Business ı By Tyler Brooks
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Japan
Japan’s aviation sector, a key global transport hub and aircraft manufacturing center, has so far seen limited immediate disruption.
All Nippon Airways said it would not raise fuel surcharges for tickets issued in April and May, as pricing had been locked in before the Iran conflict escalated.
A spokesperson said the short-term impact remains "limited" due to existing surcharges and prior hedging measures.
Japan Airlines said it has not implemented specific measures related to fuel shortages.
However, the airline noted that fares on some routes — particularly between Japan and Europe — have climbed amid increased demand following the suspension of Middle East routes.
India
India’s aviation market has been significantly affected by the suspension of flights to the Middle East, a key international corridor.
Despite cancellations, demand for travel to the region persists, with airlines such as Air India issuing daily updates on newly scheduled services.
India’s aviation authority said it expects domestic flight volumes to fall by about 10% between March and October.
On 23 March, the government temporarily lifted fare caps, allowing airlines to raise ticket prices as fuel costs climb.
The sector is also contending with ongoing restrictions on using Pakistani airspace, imposed over the past year amid bilateral tensions.
Singapore
Singapore Airlines and its low-cost arm Scoot have increased fares in response to rising fuel expenses, a spokesperson told the BBC.
Fuel remains the group’s largest cost component, accounting for roughly 30% of recent expenditures.
The fare hikes "defray" but do not fully offset the surge in costs, the spokesperson said.
Singapore’s civil aviation authority has also delayed the introduction of a planned green fuel levy, originally scheduled for April 2026, citing the economic impact of the Iran conflict.
The levy is intended to support the purchase of sustainable aviation fuel derived from renewable sources and waste products such as used cooking oil and animal fat.
Aviation plays a critical role in Singapore’s economy, contributing about 5% to its GDP.
Broader Industry Impact
Elsewhere in Asia, governments and airlines are grappling with mounting fuel concerns.
On 24 March, the Philippines declared a national energy emergency — the first country to do so in response to the Iran war.
President Ferdinand Marcos warned that grounding aircraft due to fuel shortages is a "distinct possibility," after some airlines were told they could not refuel abroad.
Vietnam’s aviation authority has cautioned that jet fuel shortages could emerge as early as April due to delayed shipments.
Vietnam Airlines has already suspended several domestic routes. The country imports nearly 90% of its oil from the Middle East.
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