00:00Welcome back. Air fares are climbing on international routes as the Middle East conflict pushes fuel costs higher.
00:08Jet fuel, which had been trading around $85 to $90 a barrel before the war, has in recent days jumped
00:14to between $150 and $200.
00:18The spike is forcing airlines to reassess prices, routes and capacity.
00:25Air fares on Asia to Europe services are already climbing as airspace closures force longer detours and reduce available capacity.
00:34Kanta says it is raising some international fares and is also looking at shifting more flights towards Europe,
00:40as airlines and passengers try to avoid disruptions across Middle Eastern airspace.
00:46Hong Kong Airlines says it will raise fuel surcharges by as much as 35% from Thursday.
00:51Meanwhile, Air New Zealand says it has raised one-way economy fares by about $20 on short-haul international routes
01:00and roughly $50 on long-haul flights.
01:04Combined, Emirates, Qatar Airways and Etihad Airways normally carry about one-third of passengers travelling from Europe to Asia.
01:11They also fly more than half of all passengers travelling from Europe to Australia, New Zealand and nearby Pacific Islands.
01:19Fuel remains the second-largest cost for airlines after labour.
01:23It typically accounts for about a quarter of operating expenses.
01:27And if prices stay elevated, the pressure on global travel is likely to continue.
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