Thai airline cuts key tourist routes citing rising jet fuel costs

Thai airline cuts key tourist routes citing rising jet fuel costs
June 1, 2026

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Thai airline cuts key tourist routes citing rising jet fuel costs

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Thai Lion Air is cutting back operations on more than 15 routes between June and September this year due to soaring fuel costs amid the US war on Iran.

The changes affect several international destinations, including China, Japan, India, Indonesia, Singapore and Nepal.

The Phuket-Singapore route, one that is particularly popular with tourists, will be suspended entirely from 3 June to 1 August. Service will then resume at two flights per week in August, reduced from the previous four weekly flights.

The airline says the impact of ongoing tensions in the Middle East on the aviation industry is largely the reason for the adjustments.

Fuel prices have surged dramatically since the start of the US-Israeli war on Iran and the subsequent closure of the Strait of Hormuz. The price of Jet A-1 aviation fuel has more than doubled from levels before the Middle East conflict. The fuel, which used to cost around $80 per barrel, has reportedly increased to more than $240 per barrel in some cases.

Since fuel typically accounts for about 30 per cent of a flight’s operating costs, airlines are being forced to reduce frequencies and temporarily suspend routes, particularly medium- and long-haul services.

File. A Eurowings aircraft takes off at the airport in Duesseldorf, western Germany, on 21 May 2026. The war in the Middle East and the closure of the Strait of Hormuz have caused a surge in aviation fuel prices and raised concerns about potential shortages this summer (AFP/Getty)

Europe’s aviation industry has also warned that a prolonged Iran war could disrupt supply chains, raise costs, and slow aircraft production.

Earlier, it was reported that the Dutch airline KLM has announced that it will not resume flights to various Middle Eastern destinations before the middle of July.

The carrier, part of the Air France-KLM group, confirmed last week that its services to and from Dubai are now suspended until at least 2 August.

Jet fuel is transported by a tank truck to a Eurowings aircraft at the airport in Düsseldorf, western Germany, on 21 May 2026. The war in the Middle East and the closure of the Strait of Hormuz have caused a surge in aviation fuel prices and raised concerns about potential shortages this summer (AFP/Getty)

Flights to Riyadh and Dammam will also remain grounded until at least 12 July.

Other airlines are also struggling. India’s major airlines, including Air India, IndiGo and SpiceJet, earlier reportedly asked state-run oil companies to delay a planned increase in domestic jet fuel (ATF) prices because the ongoing war in Iran has sharply increased aviation costs and put financial pressure on carriers.

Bloomberg reported that state-owned oil companies like Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp were considering raising domestic ATF prices by as much as 25 per cent from June.

Passengers travelling via Thai Lion Air have been advised to monitor their bookings and check directly with the airline, as they said that schedules could change further depending on fuel prices and travel demand.

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