Jet-fuel spike pushes airfares higher as airline pricing adapts

Jet-fuel prices have jumped amid Middle East tensions, prompting airlines to raise surcharges and fares; carriers such as Cathay Pacific, Qantas, SAS and Air New Zealand have signaled price increases, with UBS forecasting a first-quarter earnings hit as fuel costs stay elevated. Strong travel demand and capacity constraints could give airlines pricing power, but the ultimate fare level will depend on how long the spike lasts and how routes adapt. Travelers can mitigate by booking early and choosing flexible tickets, since refunds or credits may apply if fares fall.