Spikes in oil prices as a result of the Iran war has added more than $100 to tickets of long-haul flights in Europe, according to a new study.
Campaign group Transport & Environment (T&E) analyzed prices by mid-April compared to those before the war began on February 28. For example, a ticket from Paris to New York costs $152 more as a result of fuel spikes, the group said. The price of Brent crude is hovering above $95 on Tuesday as uncertainty about hostilities lingers. Both Iran and the U.S. are expected to head to Pakistan for a new round of talks before the ceasefire ends on Wednesday.
In this context, the European Union is preparing new guidance urging member states to reduce reliance on Middle Eastern jet fuel supplies and expand alternative sourcing.
The recommendations, expected soon, come as European airlines warn of mounting supply risks that could affect operations as early as late May. Europe currently imports between 30% and 40% of its jet fuel, with at least half sourced from the Middle East, leaving the region vulnerable to geopolitical instability, according to Reuters.
The European Commission confirmed it will present a broader response to the energy situation, including aviation fuel measures, as availability remains a primary concern. Officials are also weighing coordinated releases from fuel reserves if supply disruptions persist, the outlet added.
The urgency of the situation has been underscored by fresh warnings from global energy authorities. The International Energy Agency has cautioned that Europe could face jet fuel shortages by June if it replaces only part of its usual Middle Eastern imports, as reported by Associated Press, which noted the region may have "maybe six weeks of jet fuel left" under current conditions.
Other carriers around the world are also taking measures as a result of rising costs. Air Canada, for example, has suspended some of its U.S.-bound flights.
"As we regularly do, we monitor and review our network to ensure that routes are meeting profitability targets," the air carrier said in a statement.
"Jet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible. Schedule adjustments including some frequency reductions are being made in response."
Others taking such measures include Dutch flag carrier KLM which last week announced it was ending 80 return flights to 80 return flights at Amsterdam's Schiphol Airport. Other cuts have been announced by United Airlines Holdings Inc., Deutsche Lufthansa AG, and Cathay Pacific Airways Ltd.
"Any flying that we're doing that's on the margin, maybe not producing the yields we'd like, is likely going to be reconsidered," Delta Air Lines Inc. Chief Executive Officer Ed Bastian told Bloomberg. "This is going to be a test for the industry."
Bloomberg reported that United Airlines had announced a 5 percent reduction in capacity, while Delta airlines announced a 3.5 reduction and price increases.
