German airline Lufthansa is cutting 20,000 summer flights due to high jet fuel costs, while the EU is taking steps to prevent shortages.
Lufthansa is now part of a group of about twenty airlines that are reducing operations because of surging fuel expenses.
This decision follows criticism from Brittany Ferries’ chief executive towards airlines for imposing fuel surcharges on passengers, calling it “the unacceptable face of capitalism” and “profiteering”.
Lufthansa has confirmed the grounding of 20,000 short-haul flights until October to save around 40,000 metric tons of jet fuel, the price of which has doubled since the Iran conflict outbreak.
The flight cancellations will focus on currently unprofitable routes, including those from its six hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome. The initial 120 daily flight cancellations occurred earlier this week.
Several other airlines in the EU and globally have also adjusted their schedules to save on fuel costs or due to disruptions related to the Middle East conflict.
British Airways, for example, is reducing flights to the Middle East, dropping Jeddah as a destination permanently, while increasing capacity to India and Africa.
The airline is planning to reduce services to Dubai, Doha, and Tel Aviv to one daily flight starting July 1, and to cut Riyadh services from two daily flights to one by mid-May. These changes are effective until October 24, with one Dubai service resuming on October 16.
Iberia Express, a sister airline, has also canceled flights to Tel Aviv until May 31. The parent company, IAG, noted the rising fuel costs affecting its airlines despite not facing supply disruptions at main airports.
Ryanair’s CEO warned that the airline might need to cancel up to 10% of its summer flights, anticipating challenges in the coming months due to uncertain scenarios.
Economist Thomas Pugh highlighted that smaller airlines have already canceled routes and introduced fuel surcharges, expecting larger airlines to follow suit, similar to what has happened in Asia.
Several airlines have started adding surcharges to mitigate fuel cost increases, with Virgin Atlantic imposing varying levies on different fare classes.
Tui, a major package holiday operator, has revised its full-year profit forecast downwards due to the uncertainties arising from the Iran conflict. The company, like other airlines, is concerned about travel disruptions and rising fuel expenses impacting profit margins.
European airlines are preparing to announce their first-quarter results soon, with analysts predicting capacity reductions and further profit warnings given the challenges posed by constrained jet fuel supplies and escalating costs worldwide.
The European Union has pledged guidance for airlines on handling issues like airport slots and passenger rights in case of jet fuel shortages due to the Iran conflict.
The EU transport chief warned of potential catastrophic consequences if the Strait of Hormuz remains blocked, given Europe’s heavy reliance on oil and gas transiting through the region.
The European Commission is set to unveil a comprehensive energy and transport plan shortly to address these challenges.
Brittany Ferries reassured customers that maritime fuel shortages will not affect summer holidays, emphasizing its commitment to providing safe and affordable travel without profiteering.
Recent data from the company indicates a 37% surge in reservations for July and August, showing increased interest in domestic vacations amid concerns about international travel disruptions and rising fuel costs.
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