Unpredictable swings in oil prices are keeping airlines on their toes – and some have already warned of higher airfares ahead.

As reported yesterday, tensions around the war with Iran sent the cost of oil soaring Monday morning, only to see prices plunge amid raised hopes that the war may end sooner than later.

Uncertainty is still very much a factor, as Iran launched new attacks Tuesday at Israel and Gulf Arab countries.

According to Reuters, airlines including Qantas, SAS and Air New Zealand announced airfare increases yesterday, and Air New Zealand has suspended its 2026 financial outlook due to the uncertainty.

A spokesperson for SAS told Reuters the airline will proceed with a temporary price adjustment, noting that “increases of this magnitude make it necessary to react in order to maintain stable and reliable operations.”

Another report indicates Air France-KLM has bumped up its surcharge on transatlantic flights, by an extra €30 per roundtrip.

Le Journal de Montréal noted increases in Air Canada’s fuel surcharge as well, pointing to $25-$50 hikes in surcharges for flights from Canada to destinations including Australia, Japan and Thailand. Coverage in The Traveler suggests airfares with Canadian carriers including Air Canada, WestJet and Air Transat could see price hikes by as much as 20% on select routes.

Some airlines – but not all – hedge their fuel to protect against price spikes. Fuel hedging was once common for all airlines; few major U.S. carriers hedge their fuel these days.