Asian airlines are responding to surging fuel prices by implementing significant ticket price hikes, increasing fuel surcharges, and developing contingency plans to ground aircraft.
Ticket price hikes & surcharges: Cathay Pacific and Hong Kong Airlines nearly doubled surcharges; Thai Airways raised fares by 10–15%.
Contingency planning: Low-cost carriers (AirAsia, Lion Air, Garuda Indonesia) may delay aircraft purchases or ground planes if fuel remains unaffordable.
Operational efficiency: Airlines are adopting fuel‑saving procedures, lighter loads, and deploying newer aircraft while retiring older widebodies.
These measures come as jet fuel prices have more than doubled due to escalating conflict in the Middle East, with some carriers warning of potential bankruptcy for budget airlines if the crisis persists.
Cathay Pacific and Hong Kong Airlines have nearly doubled their fuel surcharges, with long-haul surcharges reaching over HK$1,164. In Thailand, Thai Airways International is raising average ticket prices by 10-15% and limiting the availability of low-fare tickets through dynamic pricing to offset costs. Meanwhile, low-cost carriers in Southeast Asia, including AirAsia, Lion Air, and Garuda Indonesia, are reviewing timelines for aircraft purchases and considering grounding planes if fuel remains unaffordable.
The regional impact is further complicated by a 60% reliance on jet fuel imports from China and Thailand, both of which have recently halted fuel exports to ensure their own energy security. This has led Vietnam to warn of widespread flight cuts and shortages starting in April. Despite these pressures, some carriers like Thai Airways may see marginal benefits on European routes as airspace closures in the Middle East tighten global supply and drive demand toward direct Asian hubs.
Asian airlines are stepping up their response to fuel price surges, and the impact is increasingly visible across the region’s aviation and tourism landscape. For Thailand, where tourism is a major growth engine and air connectivity is critical, these cost pressures are reshaping routes, fares, and investment decisions.
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Fuel costs and Thailand’s connectivity
Fuel remains one of the largest single expenses for airlines, often reaching a quarter or more of total operating costs, so sharp price increases quickly feed into route economics and pricing. In Thailand’s case, this matters not only for local carriers but also for the international airlines that bring tourists from key long‑haul markets. Any sustained rise in fuel prices risks higher fares, especially on long‑haul and regional routes with limited competition, and could constrain capacity growth during peak travel seasons.
In response to the energy security concerns triggered by the war in the Middle East, China and Thailand have implemented strict jet fuel and refined oil export bans to prioritize domestic needs. These restrictions have significantly impacted neighboring countries, with Vietnam warning of flight reductions and Cambodia being forced to seek alternative fuel suppliers in Singapore and Malaysia.
Within Thailand, the Department of Energy Business has confirmed that while national reserves remain sufficient for over 100 days, logistical bottlenecks have caused widespread shortages at local petrol stations. The crisis has hit the agricultural sector particularly hard, leaving machinery idle during the rice harvest season in provinces like Phitsanulok. Meanwhile, Thai Airways International has announced ticket price increases of 10-15% to offset jet fuel costs that have surged to as high as US$220 per barrel.
How airlines are adjusting
Across Asia, carriers are focusing on three main levers: efficiency, networks, and pricing. Operationally, airlines are optimizing flight planning, using fuel‑saving procedures such as continuous climb and descent, and removing unnecessary weight on board to lower fuel burn per sector. At the same time, they are deploying newer, more efficient aircraft on trunk routes and gradually retiring older widebodies that are more expensive to operate when fuel is high.
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Network decisions are becoming more selective. Marginal or highly seasonal routes are under review, with some frequencies trimmed or shifted to aircraft types that can spread fuel costs over more seats. On the revenue side, many carriers have either introduced or increased fuel surcharges on international tickets, alongside targeted fare increases where demand remains strong.
Implications for tourism flows
For tourism‑dependent economies like Thailand, these changes could influence both the volume and composition of visitor arrivals. Higher fuel‑driven costs tend to affect price‑sensitive segments first, potentially slowing growth in budget travel while preserving demand in premium and higher‑spend leisure categories. Airlines’ decisions to prioritize high‑yield routes may work in Thailand’s favor if key source markets in Asia, Europe, and the Middle East remain profitable under elevated fuel prices.
However, persistent cost pressure may limit the pace at which new routes are opened to second‑tier cities or niche destinations within the country, keeping the focus on Bangkok and a few major tourist hubs. That, in turn, could slow diversification of tourism flows away from already crowded hotspots.
‘We’re seeing the town being talked about in a positive light’
Richard Hunt and Local Democracy Reporter
05:00, 26 Mar 2026
The team from the Grand Hotel in Blackpool at the StayBlackpool Trade Show and Open Day(Image: LDRS)
Blackpool’s holiday trade is in optimistic mood for the forthcoming season and anticipates that the resort is on the up again.
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Hoteliers who attended today’s busy StayBlackpool Trade Show and Open Day said a number of factors were at play which gave them confidence about 2026.
Many felt that uncertainty over the Middle East crisis and the rising cost of fuel could help draw in more ‘staycation’ visitors to the town.
The trade show, staged in the Norcalympia Suite at the Norbreck Castle Hotel, brought together the best of the Fylde Coast accommodation and leisure trades in one place.
And the mood was upbeat among organisers and stallholders.
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Last summer saw the creation of Blackpool Tourism, which now oversees and manages major town attractions, including Blackpool Tower, Sandcastle Waterpark, and Madame Tussauds, previously operated by Merlin Entertainments.
Formed by Blackpool Council , it aims to boost the local economy and reinvest profits into town services, and has just launched its new “Ultimate Ticket” in March 2026, offering entry to six major attractions for £65 to mark English Tourism Week.
Ian White of StayBlackpool, a premier trade association for holiday accommodation in the resort and on the Fylde coast, said: “I’m very encouraged by the way things are looking.
“Kate Shane of Blackpool Tourism has declared how she wants to work with us and I believe their new Ultimate Ticket will encourage people to stay longer in the town, and bring more money in.
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“Now Blackpool is on the short list for City of Culture, we’re also seeing the town being talked about in a positive light”
Sarah Lovell was manning the stand for the Grand Hotel, one of the town’s biggest and most prominent establishments with 278 bedrooms. She said: “There really is optimism around here today.
“Speaking for the Grand alone, we’ve already had a lot of forward bookings, including for conferences.
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“And why not? Blackpool has a lot to offer. We’re a friendly town and there is something for everyone here – business people, families, couples coming here to get away for a break.
“I’m not surprised we’re included in the City of Culture List, we’ve got so much here.”
Paul Vermiglio, business development manager for Trevors Food Services, said: “We’re already hearing that quite a few people are thinking against going abroad this year, with everything that’s going on in the world.
“That presents a great opportunity for a big tourist resort like Blackpool. It’s perfect for stay-cations. I’m sure this is going to be a great year.”
New research on the value of exports in the financial and related professional services sector has been released by TheCityUK
TheCityUK chair for Wales Tom Bray.
The value of exports from financial and related professional services in Wales has grown significantly, shows new research from representative body for the sector TheCityUK. In 2023 they grew by 14.8% to reach £4.8bn.
A report from TheCityUK, Exporting from across Britain: financial and related professional services 2026, also reveals that in 2023 almost half (49%) the industry’s exports originated outside London, with Wales accounting for 2.8%.
Taking a longer view, over 2019-2023, Wales recorded the fastest annual average growth rate of financial and related professional services exports at 17%.
The data also highlight the importance of services to Britain’s overall economic position. While goods exports declined by 3.6%, total services exports rose by 14% in 2023 to £465bn, with financial and related professional services accounting for almost 40% (£174.3bn) of all services exports.
The Welsh share of 2.8% of overall UK financial and related professional services exports, equated to £4.8bn. It was only lower in the East Midlands with 2% (£3.5bn) and the north east of England, 1.5% £2.5bn)
The highest contribution was in London with 51% of the total (£89bn), followed by the south east of England 10.4% (£18.1bn) and Scotland with 6.9% (£12bn).
The report also shows that for the Cardiff Capital Region financial services contributed for 49.6% of all exports, while for the Swansea Bay City Region it is 42.3%.
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TheCityUK estimates related professional services exports from Wales accounted for 1.9% of Great Britain’s total related professional services exports in 2023. It also shows that 28% of Welsh financial services exports went to the EU.
Tom Bray, TheCityUK chair for Wales – who is also a partner with law firm Eversheds Sutherland – said, “Wales has established a financial and related professional services industry that has deep and highly regarded expertise. Firms here are increasingly exporting that expertise to international markets. The significant uplift in industry exports shows that Welsh businesses are playing an important role in the UK’s global services success, while supporting high-value jobs and investment across the country.”
The report has five key policy recommendations for government to priorities. They are: drive growth across the UK by strengthening trade intelligence and commercial diplomacy; deepen engagement to capture global market share; accelerate partnerships with high-growth markets; positioning the UK as a global digital services hub and secure the talent need for long-term competitiveness.
A spokesperson of Prince Harry and Meghan Markle have clarified issues regarding the funding of the couple’s upcoming trip.
The spokesperson also hit back at a petition against their visit that has garnered thousands of signatures.
Sussex Spokesperson Hits Back Against Petition
According to Sky News, a Change.org petition has been created protesting the upcoming visit of the Duke and Duchess of Sussex. More than 35,000 Australians have signed the petition.
The petition raises concern that taxpayer’s money will be used to fund the upcoming trip.
“At a time when Australians are facing significant cost-of-living pressures, including rising grocery bills, fuel prices, mortgage stress driven by interest rate hikes, and increasing energy costs, public resources must be used responsibly and applied fairly, without special treatment for high-profile individuals,” the petition reads.
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The spokesperson for the Duke and Duchess of Sussex have since called the petition “a moot point.”
“The trip is being funded privately, so I’m not sure what this petition hopes to achieve,” the spokesperson said.
Is Meghan Bringing Her As Ever Brand to Australia?
The couple is scheduled to travel to Australia for two separate engagements. Meghan is scheduled to headline a women’s retreat in Sydney, while Prince Harry will speak at a workplace mental health summit, which will be held in Melbourne.
However, multiple outlets have noticed that Australian trademarks have been filed for Meghan’s As ever brand, which received approval in June 2025.
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This has led to speculation that the Duchess of Sussex will be bringing her brand to Australia.
According to PEOPLE, a spokesperson merely said that the trademarks are nothing new and added that Australia is “one of many” jurisdictions where As ever is registered.
SYDNEY — Australia’s liquefied natural gas (LNG) export sector has emerged as the industry most directly and significantly affected by the ongoing U.S.-Israel-Iran war, with global price surges offering potential revenue windfalls for producers while shipping disruptions, insurance surcharges and indirect fuel cost pressures ripple through the broader economy.
LNG carrier
The conflict, now in its fourth week since major strikes began on Feb. 28, 2026, has effectively disrupted flows through the Strait of Hormuz — a critical chokepoint carrying about one-fifth of global oil and a substantial share of LNG trade. While Australia does not ship LNG through the Strait, the resulting global energy crunch has driven sharp increases in benchmark prices, directly benefiting Australian exporters but also exposing vulnerabilities in domestic operations and related sectors.
LNG producers such as those operating the Gladstone projects in Queensland have seen Asian spot prices, including the Japan-Korea Marker (JKM), nearly double since late February, with some contracts pushing toward $US30 per unit. This volatility stems from attacks on infrastructure, including strikes on Qatar’s Ras Laffan facility and Iran’s South Pars gas field, which have taken significant LNG capacity offline for potentially years.
Australia, the world’s largest LNG exporter, stands to gain from redirected demand as Asian buyers seek alternatives to disrupted Middle Eastern supplies. However, the same forces driving higher prices — diesel shortages and soaring transport costs — are squeezing the mining and agricultural sectors that underpin much of the nation’s export economy.
The energy minister has acknowledged that while Australia is a net energy exporter, its reliance on imported refined fuels leaves it exposed. Domestic diesel prices have climbed rapidly, with panic buying reported in some regions. Mining giants like Fortescue have warned that sustained high diesel costs could add billions to operational expenses for iron ore extraction and haulage.
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Farmers are similarly feeling the pinch. Wheat and barley producers in Western Australia and South Australia face higher internal freight and fertilizer costs, as global supply chains for urea and phosphates — many routed through or affected by Gulf disruptions — tighten. Australian wheat prices hit 20-month highs in recent trading amid these pressures.
Direct trade with Gulf nations, valued at around A$15 billion annually, has been hammered by war-risk insurance surcharges of up to US$4,000 per refrigerated container and carrier suspensions. Exporters of beef, wool, lamb and other agricultural goods to the Middle East report delayed shipments and rerouting that adds time and expense.
Coal exporters have seen mixed effects. Thermal coal prices have strengthened due to energy substitution away from disrupted oil and gas, providing a potential revenue boost for Australian miners. Yet higher diesel costs for rail and port operations erode some of those gains.
Iron ore shipments to Asia, Australia’s largest single export category by value, remain largely shielded from direct Strait of Hormuz routing. However, elevated fuel prices threaten profitability for producers already navigating volatile Chinese demand. Some iron ore cargoes originally bound for Middle Eastern markets have been diverted, contributing to short-term price fluctuations.
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The war’s broader impact on container shipping has triggered the worst freight disruption for Australian exporters since the COVID-19 pandemic. Major carriers have suspended Gulf transits, forcing reroutes around the Cape of Good Hope for cargo heading to Europe via traditional paths. This has increased costs and delays for a range of goods, including food products and manufactured items.
Economists note a paradoxical effect for Australia. As a major LNG and coal exporter, higher global energy prices can boost export revenues and government royalties. Yet the domestic fuel crunch — Australia imports most of its refined petroleum — risks inflationary pressures that could prompt further Reserve Bank rate hikes and slow economic growth.
The Australian Institute of Petroleum has warned that Asian refineries supplying Australia could curtail exports if shortages worsen, potentially leading to fuel rationing within weeks if stockpiles are not managed carefully. Current reserves provide only a limited buffer.
Agriculture faces compounded challenges. Beyond diesel for machinery and transport, fertilizer shortages threaten yields for the coming season. Meat exporters have reported growing stockpiles as Middle East demand softens amid regional instability, though some redirection to other markets is occurring.
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Mining operations, particularly in remote Western Australia, are among the heaviest diesel users. Executives have flagged potential production slowdowns or cost pass-throughs if fuel prices remain elevated for months. Critical minerals projects tied to the energy transition could also face delays.
Shipping and logistics firms have introduced emergency conflict surcharges across multiple routes, affecting not only direct Gulf trade but also indirect flows to Europe. Air freight into the region has been heavily restricted, compounding issues for time-sensitive exports like fresh produce and pharmaceuticals.
Government officials are monitoring the situation closely, with contingency plans for fuel security under review. The domestic gas reservation scheme, set to begin next year, aims to shield households from extreme international price spikes, but its timing leaves the current period vulnerable.
Analysts from Oxford Economics and others suggest the net economic impact depends on the war’s duration. A short conflict could see energy prices retreat quickly, with Australian LNG and coal exporters capturing temporary gains. Prolonged disruption risks deeper supply chain chaos, higher inflation and slower growth across export-dependent sectors.
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For LNG specifically, the sector’s exposure is dual-edged. Contracted volumes under long-term agreements provide stability, but spot market opportunities have surged. Producers must balance ramping up where possible against domestic supply obligations and infrastructure constraints.
The war has also spotlighted Australia’s strategic vulnerabilities. Despite vast energy resources, limited domestic refining capacity leaves the nation dependent on foreign suppliers for everyday fuels that power its export machine. Calls for renewed investment in refining or alternative fuels have intensified.
As the conflict enters its next phase, with diplomatic efforts ongoing but military actions continuing, Australian exporters across energy, resources and agriculture are adapting to a more volatile global trade environment. War-risk premiums and rerouting have become the new normal for many.
Industry groups urge the government to provide targeted support, including potential fuel subsidies for critical export sectors or accelerated approvals for infrastructure upgrades. Without relief, cost pressures could erode competitiveness even as higher commodity prices offer some offset.
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The LNG sector’s prominent role in the current crisis underscores Australia’s position as an energy superpower that remains paradoxically exposed to global shocks. While opportunities exist in a tighter market, the human and economic costs of prolonged instability loom large for producers and the wider economy alike.
Courtney Howe Head of Corporate Affairs & Investor Relations
Good morning, and welcome to the Soul Patts’ financial results presentation for the first half of financial year 2026, being the 6-month period ending 31 January 2026. My name is Courtney Howe, I’m responsible for Corporate Affairs and Investor Relations at Soul Patts, and I’m pleased to introduce our presenters for today. Todd Barlow, Managing Director and CEO, will address performance highlights; and David Grbin, our Chief Financial Officer, will cover group financial results before handing back to Todd, who will step through portfolio performance. Todd will round out the presentation with a look at the core principles behind our capital allocation process as well as the current priorities.
We will respond to questions at the end, starting with analyst questions on the line. As usual, there is the option for written questions to be submitted at any point during the webcast, and you will see a question box on the right-hand side of your screens. Please provide your name when you submit your question. Over to you, Todd.
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Todd Barlow Chief Executive Officer
Thank you, Courtney, and welcome to everybody joining us today. Soul Patts is a diversified investment house with a unique position in the Australian market. Our total portfolio is now valued at $13.8 billion. We operate as one portfolio that houses multiple asset classes. We have generated strong risk-adjusted returns through a disciplined approach for many years. The 6-month period ended 31 January 2026 was a continuation of this track record, and we are
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