The ongoing Iran war is creating uncertainty for global airlines ahead of the summer travel season. Rising jet fuel prices and regional disruptions have added pressure on carriers already facing cost challenges. The aviation sector is now dealing with its biggest strain since the Covid-19 pandemic.
Jet fuel prices have increased nearly 84 percent since the conflict began on February 28. Airlines have so far managed costs through hedging strategies, but many of these protections are now expiring. Industry leaders warn that fuel availability could tighten if the war continues.
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The International Air Transport Association said there is a risk of fuel rationing in parts of Asia and Europe. However, officials noted that current supply levels remain stable. They added that the situation is less severe than the pandemic-era collapse in travel demand.
Airlines are already seeing mixed demand patterns, with some travelers delaying bookings due to uncertainty. Several carriers have issued profit warnings, while others report strong summer bookings. Analysts say the industry response varies depending on region and business model.
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Despite concerns, global passenger capacity remains slightly higher compared to last year. Experts say the aviation industry has become more resilient and adaptable to crises. However, they caution that prolonged conflict could continue to pressure prices and profitability.