16:31 - 28.10.2026

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October 28, Fineko/abc.az. With global jet fuel prices lingering at roughly double their levels prior to the war in Iran, major international airlines are becoming increasingly reluctant to enter into new fuel hedging contracts to lock in future energy costs. Instead, carriers are warning passengers to prepare for steep airfare hikes to offset soaring fuel expenses.

Carriers fear locking in fuel prices at current peak levels, which could leave them exposed to heavy financial losses if geopolitical tensions cool and oil prices drop. US airfares have already surged over 20% year-on-year, while European ticket prices rose nearly 6%.

As legacy pre-war hedging protections expire, industry executives warn that airfares could jump by another 15% to 20% globally as airlines adjust route capacity and pass operational costs onto travelers.