Airlines worldwide are cancelling flights and imposing additional charges as the jet fuel crisis, triggered by the war on Iran and the closure of the Strait of Hormuz, continues to escalate. The Strait, blocked since February, handles about 20% of the global oil supply, driving up fuel costs and disrupting operations.
New data from aviation analytics firm Cirium shows a sharp rise in cancellations from UK airports. As of Tuesday, 296 departures were axed in May, representing 0.75% of the total, up from 120 cancellations just six days earlier. Airlines are avoiding compensation liability by cancelling flights with at least two weeks' notice, allowing them to delay summer decisions without payouts.
Several carriers have reduced schedules, hiked fares, and increased baggage fees. Ascend Airways, operating mainly from London Gatwick and Stansted, ceased operations last week, citing rising jet fuel costs. It will surrender its UK Air Operator's Certificate. British Airways' parent IAG warned profits will suffer, expecting to spend €2bn (£1.72bn) more than planned on fuel this year.
In the US, Spirit Airlines collapsed on May 2 after failing to secure a $500m (£368m) bailout. The budget carrier, already emerging from bankruptcy, was pushed over the edge by the fuel cost surge. All flights were cancelled, stranding thousands of passengers, who were refunded and told to rebook elsewhere. Lufthansa has also shut down its subsidiary CityLine, cutting 20,000 short-haul flights from its summer schedule and withdrawing long-haul aircraft.
Greek airline Aegean has announced ticket price hikes of 7-8% due to the crisis. The industry continues to grapple with geopolitical instability and soaring fuel prices, with further disruptions expected.
