Virgin has joined Qantas and Jetstar in increasing its airfares after it saw the cost of jet fuel double within a month.The airline today announced it would raise prices to align with the effects of the war in the Middle East.
“Costs across the aviation sector continue to rise, now significantly exacerbated by the situation in the Middle East,” a Virgin spokesperson said in a statement.
Virgin has increased the price of its domestic airfares due to the war in Iran pushing up the price of jet fuel. (Virgin Australia)
“We are making necessary fare adjustments to reflect these cost pressures.”
9news.com.au understands there will be a five per cent price hike to domestic business and economy flights.
The price of jet fuel, which is one of the airline’s largest expenses, was already rising due to inflation and has been made worse by the war.
“Qantas International is increasing fares this week in response to rising costs, including the significant increases in jet fuel prices,” a Qantas spokesperson said in a statement.
“These increases will vary from route to route.”
International airlines like Air India and Air New Zealand have also raised their airfares.
Air New Zealand has signalled that more price hikes and cost-saving measures will be needed as it anticipates a significant hit to its second-half earnings.
Flights are still operating, but just around Iran and the Middle East. (Flightradar24)
“If the conflict leads to continued elevated jet fuel costs, the airline may need to take further pricing action and adjust its network and schedule as required,” the airline said.
Air India group announced it will add a fuel surcharge of up to $US50 on all domestic and international routes and will adjust these accordingly with any changes in the war in Iran.
”Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control,” the airline said.
“Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled.”
Despite the global situation, airlines like Qantas and Jetstar have reported strong demand for routes to Europe and Asia. 
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