Airfares are likely to skyrocket over the coming weeks and months as Russia's invasion of Ukraine causes global oil prices to rise.

Russia is the world's third largest supplier of oil, accounting for 11% of the total supply, but the United States and Britain have already announced a boycott. 

Ukrainian President Volodymyr Zelenskyy has called for other countries to follow suit, while Russia's President has threatened to shut off his country's Nord gas pipeline which would further restrict supply.

While Australia gets most of its oil from South-East Asia, this supply crunch is causing oil prices to rise globally, with the price topping US $120 a barrel this week. 

On Tuesday, Qantas CEO Alan Joyce warned of a 7% increase in fares for his airline with a further 1% lift for every US $4 jump in price.

Some experts are forecasting oil prices could hit as high as US $200 a barrel as the United States, the world's largest oil supplier, struggles to cover the shortfall. 

Flight Centre CEO Graham Turner said on Wednesday that airfares - which are already considerably higher than pre-Covid prices - could see a further increase of up to 15% if this happens.

Share this article: