Plane ticket prices soar due to Iran war: how does this affect travellers from Hungary and Wizz Air?

The escalating conflict involving Israel, the US and Iran, and its regional consequences are already driving up air travel costs worldwide, with experts warning that ticket prices may continue rising for months. Airlines across Asia, Europe and Oceania have begun increasing fares as jet fuel prices surge after disruptions to oil supplies.

The situation could also have a significant impact on Hungary’s aviation sector, particularly the Budapest-linked low-cost carrier Wizz Air.

Oil shock pushes airlines to raise ticket prices

Airlines around the world are responding to rapidly rising fuel costs caused by the US and Israel’s war in Iran. Attacks on refineries and disruptions to shipping routes have pushed global oil prices sharply higher.

A major concern is the potential closure of the strategic Strait of Hormuz, through which a large share of the world’s oil exports normally passes. If shipments cannot leave the Persian Gulf, global fuel markets tighten quickly.

Before the escalation, aviation fuel traded at roughly USD 85–90 per barrel. Analysts now warn prices could exceed USD 150–200 in the coming weeks, according to AP.

Fuel typically accounts for around 20–25% of airline operating costs, and the proportion can be even higher for long-haul flights. As a result, carriers have little choice but to pass the rising expenses on to passengers.

Airlines worldwide introduce surcharges

Several airlines have already announced fare increases or temporary fuel surcharges.

According to Euronews, among those adjusting prices are:

• Cathay Pacific
• AirAsia
• Thai Airways
• Qantas
• Air New Zealand
• Scandinavian Airlines (SAS)

Meanwhile, the airline group Air France-KLM has indicated that long-haul ticket prices could increase by around EUR 50.

Some carriers that secured fuel prices earlier through hedging agreements (such as Lufthansa and Ryanair) may be partially shielded in the short term. However, these contracts only cover a portion of fuel needs and usually expire within months.

Industry experts say fare increases are therefore almost inevitable.

Flight cancellations and longer routes add further pressure

The conflict is also affecting flight schedules and routes. Airlines are increasingly avoiding Middle Eastern airspace, forcing planes onto longer detours that burn more fuel.

Several carriers have suspended flights to the region or cancelled thousands of services. For example, Air New Zealand has cancelled about 1,100 flights between March and early May, affecting roughly 44,000 passengers.

Other airlines have also suspended flights to destinations such as Dubai and Tel Aviv, including the Lufthansa Group and KLM.

Reduced capacity combined with longer routes is pushing ticket prices even higher, as demand shifts toward alternative routes that avoid the region.

Wizz Air shares tumble

The crisis is also being felt in Hungary. Shares of Budapest-based low-cost airline Wizz Air have fallen sharply on the London Stock Exchange.

Since early February, the company’s stock has dropped around 36%, far worse than the roughly 15% average decline seen across the airline industry.

Investors are concerned about rising fuel costs, disrupted routes and suspended services. The airline has already halted flights to Israel until late March and suspended several Middle Eastern routes, including connections to Dubai, Abu Dhabi, Amman and Jeddah, until mid-September.

These changes could affect Hungarian travellers, especially those flying from Budapest, as fewer flights and higher operating costs may translate into more expensive tickets in the coming months.

What it means for Hungarian travellers

For passengers in Hungary, the impact could become noticeable quickly. Budget airlines such as Wizz Air and Ryanair dominate flights from Budapest, meaning that fuel price increases can directly affect ticket prices on popular European routes.

Travellers heading to Asia or Australia may face the biggest increases, as these long-haul flights consume more fuel and often require longer detours to avoid Middle Eastern airspace.

Even short-haul European flights may become more expensive if airlines introduce fuel surcharges or reduce the number of flights. With some Middle Eastern routes suspended and global demand changing, seats on alternative connections could also become harder to find.

For Hungarian tourists planning summer holidays or long-distance trips, experts say booking early and preparing for higher fares may become increasingly important.

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Travellers may face months of high fares

Even if tensions ease, aviation analysts warn that ticket prices may remain elevated for some time. Oil supply disruptions, altered routes and reduced flight capacity could continue affecting airline operations well into the summer travel season. For passengers in Hungary and across Europe, this means the current fare increases may only be the beginning.