The war in Iran has led to the closure of the Strait of Hormuz<\/a>, a key trade corridor connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is considered a chokepoint, as there are few alternative options for energy transportation, beyond some limited pipeline networks in the region. The dramatic reduction in the transport of fossil fuels through the strait, which is said to have created the biggest oil supply disruption in history<\/a>, has driven oil and gas prices up sharply in recent weeks.<\/p>\n An SAS spokesperson told Reuters<\/a>, \u201cIncreases of this magnitude make it necessary to react in order to maintain stable and reliable operations,\u201d adding that the airline has implemented a \u201ctemporary price adjustment.\u201d<\/p>\n Some airlines will be more affected than others by the increase in jet fuel prices. For example, several Asian and European airlines, such as Lufthansa and Ryanair, have oil hedging in place, meaning that a part of their fuel supplies is maintained at a fixed rate. However, some companies are concerned that even the hedged fuel reserves may be at risk.<\/p>\n Finnair hedged more than 80 percent of its first-quarter fuel purchases and now worries that the fuel may no longer be available if the conflict continues. Some major jet fuel producers, such as Kuwait, have already been forced to reduce production and export quantities in recent weeks.<\/p>\n Another challenge that is driving airfares up is the closure of several airspaces because of the ongoing conflict, which has affected several Asia-Europe routes. Some airlines have been forced to open alternative flight routes for passengers to reach their destinations. Pilots have also been forced to reroute to avoid the Middle East conflict, while capacity on popular routes has rapidly increased.<\/p>\n \u201cAbsent near-term relief, airlines around the world could be forced to ground thousands of aircraft while some of the industry\u2019s financially weakest carriers could halt operations,\u201d Deutsche analysts were reported <\/a>to have said in a note to clients.<\/p>\n Meanwhile, some companies, such as British Airways, are confident that they can maintain their current ticket prices in the near-term until more is known about the mid- to long-term impact of the conflict.\u00a0 However, British Airways has cut certain routes due to continuing uncertainty, such as its seasonal flights to Abu Dhabi.<\/p>\n The uncertainty means that several airlines, across Asia, Europe, and North America, are seeing their shares plummet. Lorraine Tan, the director of equity research, Asia at Morningstar, stated, \u201cThe issue for the airlines now is that travel demand may be curtailed as costs become prohibitive for leisure travellers and as some companies start to limit business travel due to the uncertain outlook.”<\/p>\n![](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/book.jpg\"\/)
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