Asian airline shares extended losses ​on Tuesday as the U.S. and Israeli war against Iran escalated, with carriers closely monitoring fuel price spikes and many seeing a surge in bookings ‌as passengers switch from Middle Eastern airlines.

Qantas Airways CEO Vanessa Hudson said the airline had “pretty good” fuel hedging in place, but the spike in oil prices amid the conflict between the US, Israel and Iran was significant for the aviation industry.

“We’ve got pretty good hedging in place, but these are pretty significant impacts on aviation, and we’re just continuing to watch how it all unfolds,” she said at the Australian ​Financial Review’s business summit as the airline’s shares fell for a second day, trading as much as 3.9% lower.

Oil prices have surged amid the widening Middle East conflict, ​potentially driving up the cost of jet fuel and hurting airlines’ profits.

Major Gulf hubs, including the world’s busiest international airport, Dubai, which ⁠usually handles over 1,000 flights a day, remained closed for a fourth day due to the conflict.

That has left tens of thousands of passengers stranded as aviation faced its biggest test ​since the COVID-19 pandemic.

Qantas said last week that it had 81% of its fuel hedged for the second half of its financial year ending June 30, while Singapore Airlines and ​Hong Kong’s Cathay Pacific Airways are among the other Asian carriers that have fuel hedging programmes.

Japan Airlines Chief Financial Officer Yuji Saito said on Monday the carrier planned to adjust its fuel surcharge for international flights, but did not provide a timeframe.

In the domestic market, “since there is no surcharge, we’re offsetting part of the price spike through hedging,” he told reporters.

Japan Airlines shares were down 3.5% in early trading ​on Tuesday.

Shares of Korean Air Lines fell nearly 8% after resuming trade following a public holiday on Monday, and shares in Cathay Pacific were down more than 2%.