German airline Lufthansa is cancelling 20,000 summer flights due to soaring jet fuel costs linked to the Iran conflict, raising fears of further disruptions across the aviation sector. The move comes as the European Union prepares to address potential fuel shortages.
Lufthansa's Summer Schedule Slashed
Lufthansa confirmed it is grounding 20,000 short-haul flights through October, aiming to save approximately 40,000 metric tons of jet fuel. The price of jet fuel has doubled since the outbreak of the Iran war. The cancellations target unprofitable routes and affect its six hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome. The first 120 daily flight cancellations took place earlier this week.
Lufthansa joins around two dozen airlines that have scaled back operations due to rocketing fuel bills. British Airways is reducing flights to the Middle East, permanently dropping Jeddah and cutting services to Dubai, Doha, and Tel Aviv from July. Iberia Express has cancelled flights to Tel Aviv through May 31. Ryanair boss Michael O'Leary warned that his airline may cancel 5% to 10% of flights in May, June, and July.
Fuel Surcharges and Industry Impact
Some airlines have imposed fuel surcharges to offset rising costs. Virgin Atlantic added a £50 levy on economy fares, £180 on premium, and £360 on first class. Package holiday giant Tui cut its full-year profit forecast due to uncertainty from the Iran war. European airlines are expected to report broad capacity cuts and further profit warnings in upcoming first-quarter results.
Economist Thomas Pugh of RSM UK noted that smaller airlines have already cancelled routes and added surcharges, predicting larger carriers will follow. He described it as 'demand destruction in action.'
Brittany Ferries CEO Criticises Airlines
Christophe Mathieu, chief executive of cross-Channel operator Brittany Ferries, launched an extraordinary attack on airlines for imposing fuel surcharges, branding it 'the unacceptable face of capitalism' and 'profiteering.' He stated: 'The cost of our holidays rose by inflation earlier this year, and by inflation alone. There will be no further rises in the weeks or months ahead. Conflict or other global uncertainty should not be used as the basis for knee-jerk price hikes.'
Brittany Ferries reported a 37% increase in reservations for July and August, as holidaymakers consider UK staycations amid travel fears. Dan Yates of Pitchup.com noted clear signs that holidaymakers are planning flexible, fuel-free UK-based breaks.
EU Response and Fuel Supply Concerns
The European Union will provide guidance to airlines on handling airport slots and passenger rights in case of jet fuel shortages. EU transport chief Apostolos Tzitzikostas warned that a prolonged blockage of the Strait of Hormuz would be 'catastrophic' for Europe and the global economy. About one-fifth of the world's oil and liquefied natural gas transited Hormuz before the US and Israel began bombing Iran on February 28. The EU imports 30% to 40% of its jet fuel needs, with half coming from the Middle East.
The European Commission is due to present a broader package of energy and transport measures. Tzitzikostas emphasised that emergency stocks must be used transparently if supply issues arise. The International Energy Agency warned that physical shortages could start as soon as June, though European airlines currently report only higher prices.
Brittany Ferries assured customers that there is 'no chance' summer holidays will be ruined by maritime fuel shortages, as suppliers guaranteed fuel for its services to France, Spain, and Guernsey.
