As the conflict in the Middle East continues, airlines such as Cathay Pacific, AirAsia, and Thai Airways are raising airfares due to a surge in oil prices. The war between the US and Israel against Iran has not only elevated oil prices significantly but has also restricted access to oil refineries, leading to concerns that airfares might remain high for an extended period. Experts warn that this could impact travel budgets and decisions, prompting many travelers to consider alternative stopover destinations in Asia.

Cathay Pacific's chief executive Ronald Lam highlighted that the airline had not hedged against the refining margin, leaving them vulnerable to fluctuating prices. With the cost of jet fuel almost doubling, the airline is planning to introduce increased fuel surcharges for both passenger and cargo services. The decision reflects the broader trend among airlines grappling with their fuel costs amidst unstable oil prices.

The situation poses significant challenges for the airline industry, which traditionally operates on thin margins. While some airlines have managed to secure parts of their crude oil purchases, they remain exposed to heightened refining costs. The lasting effects of the conflict could reshape travel pricing in the months to come as airlines adjust their strategies to navigate these economic pressures, leaving travelers to brace for increased travel expenses.