Malaysia warns airlines may need to suspend flights if fuel prices keep rising

ISTANBUL

Malaysia said Thursday that some airlines may have to suspend certain flight operations if fuel prices keep climbing following US and Israeli strikes on Iran.

Malaysian Transport Minister Anthony Loke said on US social media company Facebook that he met with airline executives, airport operators, and aviation fuel suppliers to assess the impact of rising fuel costs.

He added that the ministry will remain in close contact with all stakeholders regarding the surge in fuel prices triggered by the US-Israel attacks, emphasizing that maintaining air cargo operations is a priority.

“Ministry of Transport (MOT) also notes the challenges faced by airlines. With fuel costs accounting for almost half of operating costs, airlines may have to suspend certain flight operations if fuel costs continue to rise,” Loke said.

Global oil markets have been highly volatile in recent weeks amid concerns about supply disruptions following the escalation of the Iran conflict. International benchmark Brent crude has surged toward the $100 per barrel level as traders assess the potential impact of tensions around the Strait of Hormuz, a key shipping route for roughly one-fifth of global oil supplies.

The sharp rise in crude prices has also pushed aviation fuel costs higher, increasing pressure on airlines whose profitability is highly sensitive to fuel expenses.

Regional escalation flared after Israel and the US launched a joint attack on Iran on Feb. 28, killing more than 1,300 people, including then-Supreme Leader Ali Khamenei, and injuring over 10,000, according to Iranian authorities.

Tehran retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets.