Airlines worldwide are adjusting ticket prices and scaling back flight capacity in response to a sudden spike in oil prices, a shift that could test the industry’s profitability if higher travel costs discourage passengers.

Prior to the escalation of the U.S.-Israeli conflict involving Iran last month, the aviation sector had projected record profits of $41 billion for 2026. However, a sharp increase in jet fuel costs—reportedly doubling in recent weeks—has disrupted those expectations, prompting carriers to reassess their operations and route networks.

Major airlines, including United Airlines, Air New Zealand, and Scandinavian Airlines, have already announced capacity reductions alongside fare increases. Others have introduced or expanded fuel surcharges to offset rising expenses.

Industry experts warn that airlines are facing conflicting pressures. Rigas Doganis, former head of Olympic Airways and a past director at easyJet, described the situation as a “perfect storm,” noting that carriers may need to lower fares to stimulate weakening demand even as higher fuel costs push them in the opposite direction.

The sector had enjoyed a strong recovery in 2025, with global passenger traffic reaching levels approximately 9% above those seen before the COVID-19 pandemic. Robust demand and supply-chain constraints, particularly delays in aircraft deliveries, had allowed airlines to maintain high seat occupancy and exert pricing power.

However, the scale of fare increases required to offset fuel costs could prove challenging, especially as households face higher gasoline prices that may limit discretionary spending on travel.

Analysts suggest capacity reductions may be the primary tool airlines use to support pricing. Andrew Lobbenberg, head of European transport equity research at Barclays, said cutting available seats is often the most effective way to drive fares higher during periods of crisis.

Airlines have already begun signaling the extent of potential fare hikes. The chief executive of United Airlines, Scott Kirby, recently indicated ticket prices may need to rise by around 20% to cover fuel costs.

Meanwhile, Cathay Pacific has increased fuel surcharges twice in the past month. From Wednesday, passengers flying return economy routes between Sydney and London will face an additional $800 surcharge, compared to a typical pre-crisis fare of about A$2,000 ($1,369.60).

Low-cost carriers are expected to be particularly vulnerable, as their customer base tends to be more sensitive to price increases. Analysts note that some travelers may shift to alternative transport options, such as rail or bus services, especially for short-haul journeys.

The current পরিস্থিত represents the fourth major oil shock for the aviation industry since the early 2000s. Previous disruptions occurred during the 2007–2008 pre-financial crisis period, following the Arab Spring in 2011, and after the outbreak of the Russia-Ukraine war in 2022.

This time, additional concerns have emerged over fuel supply security, particularly due to the closure of the Strait of Hormuz, a critical energy transit route. Airlines such as Vietnam Airlines have raised concerns about access to physical fuel supplies.

While airlines have sought to improve efficiency by modernizing fleets, supply-chain disruptions and technical issues with next-generation aircraft engines have delayed deliveries, limiting their ability to reduce fuel consumption.

Industry consolidation in the United States over the past decade has also reshaped the sector, with mergers such as Delta-Northwest and American Airlines-US Airways reducing the number of major carriers and enabling tighter capacity management. Meanwhile, low-cost operators like Ryanair and IndiGo have focused on streamlined fleets and rapid turnaround times to control costs.

According to aviation consultancy IBA, the current crisis is likely to widen the gap between stronger and weaker airlines. Companies with solid financial reserves and access to capital are expected to better withstand prolonged cost pressures, while those with weaker balance sheets may face growing financial strain.

Source: ZAWYA

Red Sea Global (RSG), the developer behind Saudi Arabia’s regenerative tourism destinations The Red Sea and AMAALA, has completed the modernisation of AlWajh International Airport in the country’s northwest.

The airport has now resumed operations, with Saudia operating three weekly flights from Riyadh and two from Jeddah. International services are expected to begin in the near future.

The project represents the first infrastructure delivery completed by RSG under its broadened mandate beyond destination development, reflecting its expanding role in enhancing connectivity, public services, and wider economic growth.

RSG Group CEO John Pagano said the redevelopment goes beyond aviation infrastructure, describing it as a strategic gateway designed to improve mobility, stimulate economic activity, and create new opportunities for communities in the region. He added that residents of Tabuk now have access to an upgraded international-standard airport with improved links across Saudi Arabia and beyond.

The upgraded facility is now capable of accommodating a wide range of commercial aircraft, including Airbus A320 and Boeing 737 families, as well as seaplanes. Its annual passenger capacity has increased to 500,000, up from 100,000 previously, with the ability to handle up to 330 passengers per hour across four gates during peak periods.

According to the company, the expansion is expected to support rising demand, strengthen tourism development, and contribute to job creation and broader economic activity across the Tabuk region.

Abdulaziz Al-Abdan, Executive Director of Aviation and Airport Operations at Red Sea Global, said the improvements significantly expand capacity for larger aircraft and higher passenger volumes. He added that discussions are already underway with airline partners and regulators to further develop future route networks in line with expected demand growth.

The airport is also set to function as a key entry point for AMAALA, the luxury wellness destination located about 45 minutes away by electric vehicle and roughly 20 minutes by seaplane.

Architectural design elements of the renovated terminal draw on the heritage of AlWajh’s historic town and the broader Tabuk coastline, aiming to reflect the region’s cultural identity.

Additional upgrades include enhanced passenger facilities such as premium lounges, cafés, a mini-market, automated banking services, car rental desks, and expanded parking. The terminal has also been equipped to support seaplane and helicopter operations as part of future transport links to AMAALA.

Source: ZAWYA

Bahrain International Airport has confirmed that the kingdom’s airspace remains open and that flight operations continue as normal, reaffirming Bahrain’s connectivity with destinations worldwide.

In a statement shared on X, the airport said its team remains focused on providing a smooth travel experience for passengers while maintaining regular flight services.

The update came after an Air India Express flight scheduled to operate from Kochi to Bahrain was cancelled on Thursday morning. The cancellation left 122 passengers stranded in Kochi.

Because the aircraft did not arrive in Bahrain, the return service from Bahrain to Kochi, scheduled to depart at 3pm, was also cancelled. The disruption affected an additional 178 passengers.

According to an airline official quoted by the Gulf Daily News (GDN), affected travelers were offered the choice of receiving a full refund or being rebooked on the next available flight.

Airport authorities have not reported any restrictions to Bahrain’s airspace, and flight operations continue across the kingdom’s aviation network.

Source: ZAWYA

Passengers at Brussels Airport will no longer need to remove liquids or electronic devices from their hand luggage during security checks, the airport announced on Friday as part of a major modernization of its security screening system.

The revamp at the Zaventem airport will take place over the next several years, with the first new scanners expected to be operational in 2028. By 2029, the entire departure security system will be replaced with cutting-edge technology, including CT scanners for hand luggage and advanced body scanners for passengers.

“The safety of our passengers and staff is always our top priority,” said Brussels Airport CEO Arnaud Feist. “With this new technology, we will not only maintain the highest safety standards but also make security screening faster and more convenient for travelers.”

Currently, passengers must remove laptops, tablets, and other electronic devices from their bags, and liquids are limited to one litre in containers no larger than 100 millilitres. The new CT scanners will allow these items to remain in hand luggage, and under European regulations, passengers will be allowed to carry up to two litres of liquids per bag.

A test of a new body scanner is scheduled for June, with the construction of an additional temporary screening platform planned in 2027 to accommodate the new technology. Once the first scanners are operational in 2028, phased upgrades of all 19 departure lanes will be completed by summer 2029. Transfer passenger lanes will be upgraded at a later stage.

Feist emphasized that the new scanners will also increase security screening capacity, preparing the airport for future growth in passenger numbers.

The initiative is part of Brussels Airport’s Hub 3.0 program, designed to enhance passenger experience and maintain the airport as a “convenient, comfortable, and future-proof European hub.” Similar CT scanner systems are already in operation at major European airports such as London Heathrow, Amsterdam Schiphol, Dublin, Rome Fiumicino, and Frankfurt.

Kuwait International Airport has activated its emergency response plan after Terminal One was struck by missiles and drones reportedly launched from Iran, causing injuries and damage to airport facilities, officials confirmed.

Abdullah Al-Rajhi, spokesperson for the Public Authority for Civil Aviation (PACA), said authorities immediately implemented established emergency protocols to protect passengers, staff, and airport infrastructure.

Air traffic has been suspended, and inbound and outbound flights have been diverted to nearby airports until further notice, Al-Rajhi added.

Technical teams are currently assessing the extent of the damage to facilities before repair operations begin. Security and contingency measures remain in place to ensure the safe resumption of airport operations.

The incident underscores ongoing regional tensions and highlights the importance of airport emergency preparedness in safeguarding travelers and aviation infrastructure.

Kuwait’s General Authority of Civil Aviation (GACA) said on Thursday that Arab and international airlines will gradually resume operations at Terminal 1 of Kuwait International Airport beginning June 1, as the country moves toward restoring full air traffic activity after recent disruptions.

Chairman of the Authority, Sheikh Engineer Hamoud Mubarak Al-Humoud Al-Jaber Al-Sabah, credited Kuwait’s leadership for its continued support of the aviation sector. He expressed appreciation to His Highness the Amir, Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah; His Highness the Crown Prince, Sheikh Sabah Al-Khalid Al-Hamad Al-Sabah; and His Highness the Prime Minister, Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, for backing efforts to strengthen and modernize the country’s aviation infrastructure.

According to Sheikh Hamoud, flight operations will resume in stages under a structured implementation plan intended to confirm technical preparedness and logistical efficiency. He said the phased approach is designed to maintain orderly air traffic movement and uphold strict passenger safety standards, with ongoing assessments at each phase before reaching full operating capacity.

The return of Arab and foreign carriers follows the completion of extensive repair, rehabilitation and development work at major airport facilities. Authorities said the upgrades included improvements to infrastructure, systems and broader operational readiness across Kuwait International Airport.

GACA also confirmed that all required enhancements at Terminal 1 have now been finalized. The main passenger terminal has undergone redesign measures intended to improve passenger movement while preserving high security and safety standards.

Sheikh Hamoud pointed to a recent inspection visit by Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, who reviewed progress at Terminal 1 and examined the latest completed developments. The visit was attended by Minister of Defense Sheikh Abdullah Ali Abdullah Salem Al-Sabah and senior officials from the Civil Aviation Authority.

During the visit, officials delivered a detailed briefing covering repair, rehabilitation and modernization projects carried out by the Authority, particularly following recent Iranian attacks targeting Kuwait International Airport. The presentation also addressed the proposed operational roadmap for the return of foreign airlines, as well as preparations linked to this year’s Hajj flight schedule.

In his closing remarks, Sheikh Hamoud praised the cooperation of government agencies working at the airport, including the Ministry of Interior and the General Administration of Customs. He also commended aviation authority staff for maintaining airport operations during what he described as exceptional circumstances.

Source: ZAWYA