Norwegian and SAS announced on Tuesday they are introducing a fuel surcharge due to increased fuel prices, according to NRK Norge. This move comes as more airlines are signaling they will raise prices due to sharply rising fuel costs, Sveriges Radio Nyheter reported. However, Norwegian denies introducing a fuel surcharge on flight tickets due to increased costs, according to the airline's press chief Catharina Solli.
SAS described the surcharge as temporary, but the airline has not disclosed the exact size of the additional fee, according to research from two sources. Passengers booking new tickets should expect to see the surcharge reflected in their total fare, multiple reports indicate. SAS will continue to monitor price developments closely and adjust its approach on an ongoing basis, the airline emphasized.
How much ticket prices will increase may vary on different routes.
How long SAS intends to keep the surcharge in place remains to be seen, research shows. The airline has not specified which routes or fare classes will be affected by the surcharge, nor has it given a clear timeline for when the surcharge might be lifted. Norwegian's press chief Catharina Solli noted that how much ticket prices will increase may vary on different routes.
She added that Norwegian is continuously working on measures to dampen the effect of increased costs while aiming to offer competitive prices to customers. Several other airlines in Asia and Oceania have increased their prices or introduced an extra fuel surcharge, major media outlets report. Several airlines are introducing fuel surcharges due to conflicts in the Middle East, according to multiple sources.
Norwegian is continuously working on measures to dampen the effect of increased costs while aiming to offer competitive prices to customers.
United Airlines warns that ticket prices could rise by an additional 20 percent if aviation fuel prices remain at the same high level as currently, the airline stated. Ferry companies are considering raising ticket prices due to sharply increasing costs following the war, Sveriges Radio Nyheter reported. The backdrop to SAS’s decision is a broader spike in global energy prices triggered by geopolitical tensions in the Middle East, research indicates.
Oil markets are particularly sensitive to instability in the Middle East, which is home to a significant share of the world’s proven oil reserves and key shipping routes, analysts note. Even the threat of supply disruptions can cause oil prices to rise sharply in a matter of days, according to market observers. Oil prices have risen sharply during the ongoing war in Iran, especially due to the war's impact on transport through the Strait of Hormuz, major media reports confirm.
Increased fuel prices affect Norwegian and will naturally be reflected in their prices, and they are continuously working to dampen the effect of increased costs while aiming to offer low and competitive prices.
Aviation is among the most exposed industries to oil price spikes due to its near-total dependence on oil-derived jet fuel, research shows. Commercial aviation has no immediate alternative to kerosene-based fuel at scale, experts emphasize. Jet fuel typically accounts for between 20 and 30 percent of an airline’s total operating costs, according to industry data.
Oil prices have risen sharply in recent days, and airlines are among those hardest hit in such situations, multiple sources report. Aviation fuel prices have nearly doubled in recent days, Air New Zealand stated. Fuel surcharges are a well-established practice in the airline industry and have been used during previous periods of high oil prices, research indicates.
Critics have argued that surcharges are not always removed when prices fall again, making them effectively a permanent addition to ticket prices, according to some analysts. SAS communications chief Øystein Schmidt explained that SAS is forced to take action due to the current situation, implementing a temporary price adjustment because of the unusually rapid and significant increase in costs. For travelers booking flights with SAS in the near term, the surcharge means higher total ticket prices, research shows.
Passengers who have already booked are unlikely to be affected, as surcharges are generally applied to new bookings only, according to industry practices. Key unknowns persist, including the exact amount of the fuel surcharge being implemented by SAS and which specific routes or fare classes are affected. It is also unclear how long the temporary fuel surcharges will remain in place, and what the timeline is for when other airlines might announce or implement fuel surcharges.
The industry is closely monitoring developments, with airlines adjusting strategies based on ongoing fuel price fluctuations. Potential future actions could include further surcharges or pricing adjustments if oil costs continue to climb, though specifics remain uncertain as carriers navigate the volatile market.