Airlines are canceling flights as they face jet fuel shortages and rising prices brought on by the Iran war
Jet fuel costs and supplies around the world are under pressure due to the US and Israel’s war against Iran.
Some major airlines are canceling flights in response.
One airline executive identified fuel prices as the most serious problem in his business.
First, combat made flights more expensive. Now he is destroying them.
USA and Israel’s war Attacks on Iran have disrupted supply chains and caused oil to become stuck in storage facilities across the Middle East.
This saw the price of Brent crude exceed $100 a barrel in early March, then fall below that benchmark when ceasefire talks began this month. When markets closed on Friday, the price was $92.42.
Jet fuel prices It rose even faster, doubling in price to almost $200 per barrel. As the war drags on, it becomes more difficult to find jet fuel for countries that do not produce jet fuel or have limited supplies.
“We have jet fuel left in Europe for maybe six weeks,” International Energy Agency Executive Director Fatih Birol told The Associated Press on Thursday.
He added that if the Strait of Hormuz is not opened, flight cancellations may occur due to fuel shortage.
Many airlines have canceled flights or grounded planes due to rising costs.
June Goh, senior oil market analyst at Sparta Commodities, said in a post on X that jet fuel requires special storage, which means it is stored less than other products such as gasoline.
“Travel in Asia has become much more expensive, with many airlines adding fuel surcharges or canceling flights outright,” he wrote. “There is a situation facing Europe” jet fuel supply shortage. Prepare yourself.”
Here’s a look at some of the airlines that have already started canceling flights: rising prices and falling materials.
CEO Michael O’Leary said in an interview with Sky News that jet fuel supplies could be at risk if the war continues.
“We do not expect any disruptions until early May, but if the war continues we face the risk of supply disruptions in Europe in May and June,” he said.
KLM said it canceled 80 return flights from its home base of Amsterdam Schiphol Airport on April 17.
He added that these routes were “no longer financially operable” due to rising kerosene costs. The airline also announced that there is no shortage of kerosene.
On the same day, Germany’s Lufthansa announced it would retire dozens of aircraft ahead of schedule due to rising jet fuel prices and the impact of labor disputes.
Most of the aircraft are Canadair CRJ aircraft, which is shutting down its loss-making regional subsidiary Lufthansa CityLine.
KLM planes at Amsterdam Schiphol Airport.Patrick van Katwijk/Getty Images
Swiss Edelweiss Air also said it canceled flights to the United States due to decreasing demand and rising fuel prices. It will no longer fly to Denver or Seattle and will reduce the frequency of flights to Las Vegas.
A spokesman for Scandinavian Airlines said it would cut about 1,000 flights in April due to increases in jet fuel costs.
They added that most of the canceled flights were on short-haul routes in the Nordic region, at airports with multiple flights per day.
Many airlines in Asia have said they will cut flights to alleviate fuel shortages and rising costs.
Vietnam Airlines suspended seven domestic flight routes starting April 1, a local state newspaper reported, according to Reuters. The outlet reported that Vietnam Airlines plans to reduce flight volume by 10% to 20% per month in the next fiscal quarter if jet fuel prices rise to $160 to $200 per barrel.
Other local airlines, including Vietjet Air and Bamboo Airways, will also reduce flights.
AirAsia said it cut its flights by 10% and increased fares to reduce the impact of the epidemic. rising fuel costs. The Malaysian low-cost airline, which flies to 25 countries, added that it will reduce capacity on routes where it cannot afford fuel costs.
At a media briefing on April 6, CEO Bo Lingam said the fuel surcharge had increased by up to 20% and overall ticket prices had also increased by 30% to 40%.
Lingam says jet fuel is on the rise $90 per barrel Before the war, this figure was up to $200 per barrel, defining this as the airline’s most serious problem.
CEO of United Airlines Scott Kirby In a memo sent to staff in March, he said the company would cut flights in the next two quarters.
“In the short term, this means tactical pruning of flights that are temporarily unprofitable in the face of higher oil prices,” Kirby said.
The airline planned to cancel some off-peak flights and red eyes.
“If prices stay at this level, that would mean spending an extra $11 billion annually on jet fuel alone,” Kirby said in a message to employees on the company’s website. “To put it in perspective, in United’s best year ever, we made less than $5 billion.”
Delta has not officially announced any flight disruptions due to fuel prices; The oil refinery it owns in Pennsylvania gave it a buffer during the crisis.
“This won’t completely close the crack, but it gives us some pretty significant protection,” Delta CEO Ed Bastian said at a JP Morgan conference in March.
Delta is cutting its seasonal Los Angeles-Anchorage route this summer, telling Business Insider that it is “adjusting its schedule based on customer demand.” Alaska Airlines will be the only operator on this route.
Air New Zealand said it would cut about 5% of its flights, or about 1,100, in early May.
“For example, we are focused on consolidating flights during off-peak flight hours or where there is an alternative where we can accommodate customers again,” CEO Nikhil Ravishankar told local publication 1News in March.
Air Canada says it will suspend certain routes starting at the end of May due to rising jet fuel costs.
“Jet fuel prices have doubled since the beginning of the Iran conflict, impacting some low-profit routes and flights that are no longer economically viable,” the company said in a statement. The statement was included. “Schedule adjustments, including some frequency reductions, are being made in response to this.”
The route suspension will affect certain intra-Canadian, cross-border and international flights.
