Carriers juggle shifting airspace amid rising fuel costs

Freighter operators are adjusting their strategies as fuel costs rise while rerouting flights around restricted airspace to support demand. Airspace has been limited since Russia invaded Ukraine in February 2022, and carriers have even less airspace available now after the outbreak of the Iran war , Hakan Bulat, president of Hong Kong Air Cargo, said during a panel discussion at Cargo Facts Asia 2026 in Shanghai last week. [caption id="attachment_57296131" align="aligncenter" width="2560"] Hakan Bulat, president of Hong Kong Air Cargo, speaking at Cargo Facts Asia 2026. (Photo/Cargo Facts)[/caption] “At Hong Kong Air Cargo, we had some routes operating into the Middle East and some using Middle Eastern airspace,” Bulat said. “On very short notice, we had to adjust those routes. Sometimes we have to fly longer block hours, and some flights we have to cancel.” The carrier must be flexible and take action within a couple of days, he said. SF Airlines had been operating more than ten flights a week to Abu Dhabi (AUH) through its joint cargo deal with Etihad Cargo when it suspended the service after the start of the Iran war, SF Airlines Commercial Director Robert Zhang said during the discussion. “We lost some capacity, but we still can meet our clients’ demand in the Middle East and Europe together with our partner,” he said. While carriers scrambled to reroute flights at the start of the war, oil and jet fuel prices became a growing concern that the industry began monitoring closely, Bulat said. Fueling concerns The global average jet fuel price has steadily risen from $99 per barrel since the war began on Feb. 28 and stood at about $195 per barrel in the week ending March 27, according to the IATA Jet Fuel Monitor. “What we have witnessed has never happened in history before,” Bulat said. “The oil price increased rapidly on short notice, within 48 hours to 72 hours. In the past, it all happened over the course of two, maybe six months. So, that is a proper shock.” Jet fuel is also more expensive in Asia than the rest of the world, he added. Rising fuel costs are now the biggest pressure on the air cargo industry, Fly Meta founder and Chairman Danny Duan said during a discussion on widebody freighters. In addition to a price surge, shortages at some airports mean aircraft cannot always fully refuel. Fuel now accounts for up to about 60% of operating costs, significantly increasing overall expenses. That could affect the broader economy over the next couple of months, which could then reduce consumer spending and air cargo demand, he said. While rising fuel costs make it increasingly difficult to justify the deployment of older freighters that consume more fuel, there are other challenges that operators face, Mark Sutch, chief commercial officer of cargo at IndiGo Airlines, said during a narrowbody panel at the conference. “If you’re flying from India to the Middle East and your alternate airport is no longer in the United Arab Emirates or Saudi Arabia, but back in India, your payload has dropped from 24 tonnes to 15 tonnes,” Sutch said. This is a good example of how fuel, insurance, payload and other operational constraints are squeezing freighter economics, he added. See Cargo Facts’ coverage of Cargo Facts Asia 2026 . The inaugural Cargo Facts Routes and Airport Conference will take place April 27-28 in Brussels at the Marriott Hotel Grand Place, along with Cargo Facts EMEA 2026, taking place April 28-30. To see the agendas and register for the events, visit CargoFactsEvents.com .

Carriers juggle shifting airspace amid rising fuel costs

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