ANA, JAL Report ¥140B Fuel Cost Spike from Mideast War, Hedging Curbs Net Hit

Japan's top airlines ANA and JAL warned investors of surging jet fuel costs from the Middle East conflict, estimating a ¥140 billion hit for ANA this year, though hedging, fares, and cuts limit the net impact to ¥60 billion with 90% of domestic fuel hedged. JAL sees no May supply issues but flags potential ¥28 billion monthly rises if kerosene hits $200/bbl and USD/JPY reaches 160. Both expect pressure to ease post-July-September quarter, with ANA eyeing surcharges from April 2027. Elevated oil prices signal ongoing airline margin risks but limited near-term supply disruptions.