The European Union's transport commissioner has warned airlines that cancelling flights due to fuel shortages will not exempt them from compensating passengers under EU law. Apostolos Tzitzikostas told the Financial Times that rising jet fuel prices do not constitute 'extraordinary circumstances' that would allow airlines to avoid payouts.
'The price of jet fuel is the reason why we have cancellations of flights and if they cancel flights without extraordinary circumstances – jet fuel prices are not extraordinary circumstances – they will have to reimburse the people,' Tzitzikostas said. The EU regulation remains in place in the UK post-Brexit, though the government has reportedly eased penalties for airlines cancelling flights due to fuel shortages.
Ryanair, Europe's largest airline, said it would not cancel summer flights as it had hedged fuel contracts before the Iran war. A 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.' Other carriers, including Lufthansa and Aer Lingus, have already cancelled flights.
The fuel crisis has been described as worse than the Covid pandemic by AirAsia CEO Tony Fernandes. 'I thought I’d seen it all with Covid … but having seen jet fuel go up almost three times – this is much worse,' he told the Financial Times. Fuel costs have surged since the US and Israel launched their war on Iran on 28 February, disrupting oil exports through the Strait of Hormuz.
A UK government spokesperson said airlines are not currently experiencing a shortage of jet fuel, adding: 'We continue to work with fuel suppliers, airports, airlines and international counterparts to keep flights operating.' Meanwhile, Ryanair announced a $19bn deal to buy 150 Airbus A220-300 jets, with an option to double the order, securing years of work for the Short Brothers' plant in Belfast.
