The International Air Transport Association (IATA) has warned that airlines will face an additional $100 billion in jet fuel costs this year, with fares expected to rise as a result. The increase is attributed to supply disruptions following the conflict with Iran, which has choked oil supplies and driven up prices.
According to IATA, jet fuel prices are projected to be 70% higher on average in 2026 compared to the previous year. The organization stated that the extra costs are 'inevitable' and will be passed on to consumers through higher ticket prices.
IATA represents approximately 290 airlines worldwide, accounting for 82% of global air traffic. The association has called for governments to take measures to stabilize fuel markets and mitigate the impact on the aviation industry.
The conflict with Iran, which began in early 2026, has disrupted oil production and shipping routes in the Middle East, leading to a sharp increase in crude oil prices. Jet fuel, a refined product, has been particularly affected due to its reliance on specific crude grades.
Airlines are now reviewing their pricing strategies and operational efficiencies to manage the increased costs. Some carriers have already announced fare adjustments, while others are exploring fuel-saving measures such as optimizing flight routes and investing in more fuel-efficient aircraft.
