Topic analysis

Air fares soar by nearly 25% as Iran war forces flights to re-route

New research from consultancy Teneo finds average lowest-priced economy airfares have risen 24% year-over-year due to the Middle East conflict, which has forced airlines to reroute flights (increasing fuel consumption), driven jet fuel prices from $85-$90 to $150-$200 per barrel, and reduced long-haul capacity via disrupted Gulf carriers—with Europe-East Asia routes seeing the steepest hikes (e.g., London to Melbourne up 76%, Hong Kong to London up 72%). Meanwhile, US Vice President JD Vance is reportedly traveling to Pakistan for peace talks (though Iran hasn’t confirmed a delegation), US President Donald Trump has stated he doesn’t want to extend the ceasefire expiring Wednesday, and UK airlines via industry body Airlines UK have sent a confidential briefing to the government requesting measures like temporary Air Passenger Duty cuts, relaxed night flight rules, and permission to use US Jet A fuel to mitigate potential future disruptions, with officials noting current jet fuel supplies are stable.