economy
Europe’s biggest airlines say fuel price spike caused by Iran war will drive up fares
Carriers warn they cannot hold off passing on costs for long, while some airlines plan to increase flights via Asia
TL;DR
- Rising fuel prices due to the Middle East conflict will lead to higher airfares.
- Airlines cannot indefinitely absorb increased fuel costs.
- Long-haul carriers are rerouting flights through Asia to bypass disrupted Gulf hubs.
- EasyJet and Ryanair downplay immediate fuel shortage fears but acknowledge long-term price increase risks.
- Kerosene prices were already significantly up, with crude oil rising sharply due to escalating hostilities.
- Airlines for Europe (A4E) is lobbying for reduced green taxes and a postponement of eSAF mandates.
- The EU transport commissioner believes the industry needs to invest in sustainable fuels.
- Campaign groups criticize airlines for creating uncertainty around sustainable aviation fuel targets.
- Tourism to Europe from the Middle East is at risk, potentially benefiting Mediterranean destinations.
- Direct flights avoiding Middle Eastern airspace are being increased.