Europe's largest airlines have warned that rising fuel prices caused by the Middle East conflict will lead to higher ticket prices, urging passengers to book early. Carriers including Air France-KLM and Lufthansa said they cannot avoid passing on additional costs for long, despite some hedging.
Long-haul airlines are adding more flights via Asia as Gulf hubs operate at reduced capacity following the US-Israeli attack on Iran. Lufthansa has added 40 flights to Asia, while Air France-KLM is boosting capacity to the region, citing strong demand on routes to Asia and Africa.
Budget carriers EasyJet and Ryanair downplayed immediate fuel shortages in Europe. EasyJet chief Kenton Jarvis said the airline is 'not seeing any issues' with supply, but advised early booking as hedges unwind. Ryanair's Michael O'Leary warned that prolonged price rises could become a problem if they last six months.
According to Iata's jet fuel monitor, kerosene prices were 94% above the annual average last week, and crude oil rose sharply on Thursday amid escalating hostilities. The airlines, meeting in Brussels under the A4E trade group, urged EU leaders to cut green taxes and postpone mandates for sustainable aviation fuel, warning of lost competitiveness.
EU transport commissioner Apostolos Tzitzikostas indicated the industry must invest in greener fuels. Campaign group Transport & Environment criticised the airlines, saying their call creates uncertainty that hinders sustainable fuel scale-up.
