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In the context of escalating conflicts in the Middle East, disrupting transportation through the Strait of Hormuz and pushing up global energy prices, many countries and airlines around the world are actively implementing response measures. Download Jet fuel prices and global supplies are under pressure from the war in Iran (Photo: Clash Report). Indonesia decides to anchor subsidized fuel prices. The Indonesian government has announced a series of transport and fuel policies to ensure macroeconomic stability and control domestic costs. At a press conference in Jakarta on April 6 with the attendance of three relevant ministers, the Indonesian Government pledged not to increase subsidized fuel prices until the end of 2026, even in the scenario of average oil prices at 100 USD/barrel. According to Minister Purbaya, with the current budget space and maintained fiscal discipline, the budget deficit will continue to be kept below 3% of Gross Domestic Product (GDP). The decision to anchor subsidized fuel prices is considered an important step to reduce inflationary pressure and protect peoples purchasing power. However, Coordinating Economic Minister Airlangga Hartarto said the aviation sector was directly affected by the increase in jet fuel prices, so it was forced to make adjustments. Specifically, domestic airfare prices will increase by about 9-13%, but the state will support value added tax (VAT) of 11% for economy class tickets, with an estimated support scale of 1,300 billion rupiah/month (81.25 million USD). This policy will be reviewed and adjusted every 2 months depending on geopolitical developments in the Middle East. In addition, the import tax on aircraft parts was reduced to 0% to lower operating costs for airlines. The government estimates this measure could boost economic activity by about 700 million per year, contribute an additional 1.49 billion to GDP and create about 1,000 direct jobs. Meanwhile, at the press conference, Transport Minister Dudy Purwagandi said the fuel surcharge ceiling was also raised to 38% for both jet and turboprop aircraft, instead of the previous 10% and 25% levels. However, thanks to tax incentives, ticket prices are still controlled within the allowable range. Many airlines increase ticket prices. AirAsia This Malaysia-based airline said that since the conflict broke out, it has reduced its total number of flights by about 10%. In Europe, due to cost pressure, many airlines are also forced to increase ticket prices. Some long-haul flights saw increases of around 100 euros for round-trip tickets, while short- and medium-haul flights also recorded smaller increases. However, according to regulations, airlines cannot adjust prices for tickets that have already been sold, causing profit margins to continue to narrow. More worryingly, rising fuel prices are making some flights no longer profitable. Some European airlines have had to cancel flights, while other businesses are considering cutting operating frequency to limit risks. In Europe, especially France, the impact is even more pronounced because this region depends heavily on imported fuel from Gulf countries. As a result, the proportion of fuel costs in airline operations has increased sharply, from 25% to 45% in just a short period of time. According to the French National Aviation Federation (Fnam), the aviation industry is facing a real oil shock. Jet fuel prices have more than doubled in just one month - an unprecedented increase, far exceeding the increase in crude oil prices. The main reason comes from the disruption of supply through the Strait of Hormuz - an important shipping route accounting for about 25% of global kerosene exports - along with increased refining and transportation costs. World airlines cut flights. Some major airlines in the world are canceling flights and temporarily suspending flight operations due to high gasoline prices and supply shortages. Lufthansa is preparing scenarios to respond to the worst and possible boss situations. blanket to 40 planes. A Scandinavian Airlines spokesman said in March that about 1,000 flights could be cut due to rising fuel costs. Most of the suspended flights are short-haul flights in Northern Europe. The airline has temporarily increased ticket prices. United Airlines in the US is also considering cutting the number of flights in the next 2 quarters. If gas prices remain at this level, it means there will be an additional 11 billion USD in annual costs just for jet fuel. Objectively speaking, in United Airlines best year, we earned less than 5 billion USD, General Director Scott Kirby informed company employees. Air New Zealand said it will cut about 5% of flights, equivalent to about 1,100 flights from the beginning of May. General Director Nikhil Ravishankar said that the company will combine the flights. flights during off-peak hours or flights where there is an alternative plan to transfer passengers to another flight. Many major airports in Italy limit aviation fuel supply amid the escalating energy crisisDue to geopolitical tensions in the Middle East, strategic airports in Northern Italy have officially applied measures to limit aviation fuel supply. This decision was made after fuel reserves dropped dramatically, forcing authorities to implement a priority distribution plan. Accordingly, four airports, Milan Linate, Bologna, Venice and Trevis, began tightening fuel supply from April 4. Air BP Italia - the aviation subsidiary of British Petroleum Group - said these restrictions will last at least until April 9. According to the official notice sent to airlines, some flights will be given priority for refueling, including ambulance flights, state official flights and flights with journeys over 3 hours. For the remaining short flights, each aircraft can only carry a maximum of 2,000 liters of fuel. According to technical calculations, this amount of fuel is only enough for popular aircraft such as the Boeing 737 or Airbus A320 t
