The conflict in the Middle East between the US and Iran has driven up fuel prices globally and impacted the flying schedules of several carriers ahead of the summer holidays
Several major airlines have cancelled flights in May as the aviation industry struggles to keep up with rising jet fuel prices and worries over a possible fuel shortage as the tensions in the Middle East remain rife.
The US and Iran have been in conflict since February 28 when joint US-Israeli forces carried out strikes on several key Iranian sites. Iran retaliated by striking sites across the Middle East and closing the critical Strait of Hormuz trade route, through which 20% of global oil traded passes.
Data from aviation analytics firm Cirium shows 296 departures from UK airports were cancelled for May as of Tuesday, May 12. This marks an increase from the 120 cancellations reported six days earlier.
The outlook for the peak summer travel period appears more stable, with week-on-week schedule reductions for June at 48 fewer outbound flights. July has seen a reduction of 31 flights week-on-week, while August shows a decrease of just four flights.
Around 13,000 flights were cancelled globally in May, resulting in two million fewer available seats, according to previous information shared by a Cirium analyst.
These cancellations are primarily driven by the high price of jet fuel, rather than any supply shortages, the Independent reported.
A significant proportion of the grounded flights come from German carrier Lufthansa and Turkish Airlines, after both airlines opted to cancel flights as a cost-saving measure.
Airports are set to ease regulations, allowing airlines to cancel flights without forfeiting their allocated “slots” if fuel scarcity prevents them from operating.
The responses by some of the major airlines to the fuel crisis:
British Airways
IAG, which owns the carrier, has mentioned talking of “pricing adjustments to reflect these higher fuel costs”.
A spokesperson for the airline said: “We are not seeing jet fuel supply interruptions, but fuel prices have risen sharply and, despite our hedging strategy, which gives some shorter-term mitigation, we are not immune to the impact.”
Easyjet
EasyJet Holidays has said that customers’ holidays will “go ahead as planned” without additional surcharges.
Chief executive Garry Wilson said: “We know that holidaymakers may have questions about what recent global events might mean for their travel plans this summer, so we are giving our customers absolute peace of mind that no surcharges will be added to their flights or package holidays.”
Chief financial officer Kenton Jarvis previously said European consumers could expect higher ticket prices towards the end of summer, when existing fuel hedges draw to an end.
Jet2
Jet2 has vowed not to surcharge summer holidaymakers due to rising jet fuel costs.
Chief executive Steve Heapy said: “Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2. Customers booking with Jet2 know that they are locking in their price without additional cost surprises later.”
Ryanair
Ryanair’s chief executive Michael O’Leary, has warned that several European airlines could face financial difficulties and potential failures if jet fuel prices remain high throughout summer.
O’Leary said that Ryanair is “the best insulated, most hedged airline in Europe” and that the carrier is committed to not imposing price increases or fuel surcharges on customers.
