The airline industry is bearing the brunt of the economic repercussions of geopolitical tensions in Iran. To offset soaring fuel costs, the Air France-KLM group has officially announced a fare increase on its long-haul network.

Key takeaways from the tariff adjustment

1. Application: Applies to tickets issued since March 11 .
2. Amount: A €50 increase on return tickets in economy class.
3. Scope: Long-haul flights only. The low-cost subsidiary Transavia is maintaining its prices for the time being, while remaining vigilant.

A global phenomenon

The Franco-Dutch group is not an isolated case. Faced with a barrel of kerosene that has doubled since the beginning of the year (reaching approximately $168 according to the Platts index), international competitors are reacting:

1. Cathay Pacific announced a doubling of its fuel surcharge starting March 18.
2. Qantas, SAS, Air India and Hong Kong Airlines have also raised their prices.

Why is kerosene so expensive?

While crude oil (Brent) is nearing $100 , the price of jet fuel is rising even faster. Two factors explain this discrepancy:

1. Refining: Rising processing costs.
2. The industrial priority: Kerosene represents only 9% of refinery production, often coming after gasoline or diesel.

The key figure: According to IATA, fuel now represents more than a quarter of airlines' total operating costs.

The "cover" strategy: a partial shield

Not all companies are in the same boat. Those that anticipated the crisis through fixed-price fuel purchase contracts (hedging) are limiting the damage. Air France-KLM thus benefits from relative protection, having secured 70% of its fuel needs for the next six months.