The European Union's transport commissioner has stated that airlines canceling flights this summer due to fuel shortages or high jet fuel prices must still compensate passengers under European law. Apostolos Tzitzikostas told the Financial Times that high fuel prices do not constitute extraordinary circumstances that would exempt airlines from paying compensation.
EU Law and UK Position
"The price of jet fuel is the reason why we have cancellations of flights. If they cancel flights without extraordinary circumstances — jet fuel prices are not extraordinary circumstances — they will have to reimburse the people," the commissioner said. Although the EU law remains in place in the UK post-Brexit, the British government is free to adopt a different stance. Last week, it emerged that penalties for airlines canceling UK flights due to jet fuel shortages have been eased.
Ryanair's Hedging Strategy
Ryanair, Europe's largest airline, announced this week that it will not cancel summer flights because it hedged its fuel contracts before the Iran war began. A Ryanair spokesperson said: "As Ryanair has hedged 80% of our jet fuel to March 2027 at $67 per barrel – less than half current spot prices – we do not plan any cuts to our schedule this summer." In contrast, other airlines such as Germany's Lufthansa and Ireland's Aer Lingus have canceled flights.
Fuel Crisis Worse Than Pandemic
Tzitzikostas's remarks came as the chief executive of a major Asian airline described the fuel crisis as worse than the Covid-19 pandemic. Tony Fernandes, CEO of AirAsia, told the Financial Times: "I thought I'd seen it all with Covid … but having seen jet fuel go up almost three times – this is much worse." He added: "You wake up one day and your major cost has tripled – it was quite a new experience for me." The cost of fuel has surged since 28 February, when the US and Israel launched their war on Iran, effectively closing the Strait of Hormuz to shipping and choking off Middle Eastern oil exports.
UK Government Response
A UK government spokesperson said: "UK airlines are clear that they are not currently seeing a shortage of jet fuel. Aviation fuel is typically bought in advance and airports and suppliers keep stocks of bunkered fuel to support their resilience. We continue to work with fuel suppliers, airports, airlines and international counterparts to keep flights operating." The Department for Transport added that it is consulting on measures to help airlines plan realistic flight schedules to avoid last-minute disruption and protect holidays.
AirAsia's Future Plans
Despite the war, AirAsia is securing its long-term future. The airline has finalized a $19 billion (£13.9 billion) deal to purchase 150 Canadian-made Airbus A220-300 jets from 2028, with the option to double the order to meet future demand. Announced at Airbus's facility in Mirabel, near Montreal, this represents the largest order in Canadian aircraft history. It will also boost workers in Northern Ireland, providing years of work at the Short Brothers plant in Belfast, which manufactures wings for the Airbus A220.
