The chief executive of an airline that recently cancelled flights from London Gatwick has cautioned that further cancellations are imminent as the ongoing conflict with Iran continues to drive fuel prices upward. Eivind Roald, CEO of Norse Atlantic Airways, stated that his company was compelled to act due to soaring costs, which surged by more than 100 percent within a few days.
Challenging Internal Discussions
These dramatic increases led to what Roald described as challenging discussions internally, culminating in the decision to suspend all of the airline's flights to Los Angeles for the summer season. Speaking on BBC Newsnight, Roald indicated that he anticipates rival airlines will also be forced to cancel flights.
Roald's Statement on Competitors
From our side, we will continue flying from London Gatwick, Athens, and Rome this summer, and we have no plans to cancel additional flights, Roald said. Regarding our competitors, I cannot say for certain, but I assume we will see more cancellations. We often observe this happening with short-haul flights in Europe, while long-haul flights remain operational for now.
It is understood that British Airways owner IAG, Easyjet, and Jet2 holidays currently have no intentions to alter their schedules. Roald expressed optimism that jet fuel prices would decrease again within six to nine months.
Industry Consolidation Expected
Roald added, What we will see is a consolidation in the industry. We believe things will change, and some companies may cease to exist. The airline boss issued an ominous warning about the future of the sector.
These comments come as passengers have already experienced rising fares since the start of Donald Trump's conflict with Iran in February. The confrontation prompted Iran to close the Strait of Hormuz, a critical route for jet fuel from the Gulf. Before the conflict, 21 million barrels of crude oil, petroleum, and other energy sources passed through the strait daily.
Potential Disruption for Holidaymakers
Britons who have already booked their summer holidays may still face travel disruption. The International Air Transport Association (IATA), representing over 360 airlines, has warned passengers to expect flight cancellations during the May half-term holidays as disruptions spread from Asia to Europe.
Despite warnings from the International Energy Agency (IEA) that Europe could face jet fuel shortages within six weeks, experts believe that lower demand will naturally mitigate the issue. This would allow airlines to consolidate schedules and operate fewer flights on high-frequency routes.
Government Response
Number 10 has insisted they are doing everything necessary to prepare for potential jet fuel issues in the coming months. The UK has increased imports of jet fuel from outside the Middle East, but this is not believed to be sufficient to resolve future problems. Over 60 percent of the country's jet fuel imports originate from the region.
Sally Gethin, an aviation specialist, noted that the scale of the impact on air passengers will depend on how long the Strait remains closed. Even if it opens, it would take time for jet fuel supplies to restart, she told the Daily Mail. The best-case scenario would be higher fares and some route cancellations. The worst-case scenario, if this continues for six to eight weeks, is that shortages become severe. This could pose an existential crisis for airlines, as even fuel surcharges would not recoup costs. We could see tens of thousands, potentially hundreds of thousands, of flights cancelled globally. Holiday companies could also be affected, although consumers with ATOL protection would be safeguarded.
