Airlines in Asia are raising ticket prices and mapping out contingency plans that include grounding planes as the escalating Middle East conflict threatens to trigger the worst oil shock since the 1970s.
Indian carriers have hiked prices on long-haul routes by 15% and are considering further increases, people familiar with the matter said. In Vietnam, state media warned airfares could increase as much as 70% given the country¡¯s reliance on imported jet fuel.
Airlines in the region aren¡¯t as well hedged against high oil prices as rivals in Europe or the U.S., making them more vulnerable to sudden surges in jet fuel prices. That¡¯s prompted low-cost Southeast Asian carriers to start gaming out scenarios where they would ground planes if jet fuel becomes unaffordable or inaccessible, according to people familiar with the matter.
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