Fuel, Lufthansa and Ryanair raise alarm over flight cancellations in summer
Rising ticket prices due to the cost of jet fuel
by Mara Monti
Key points
There is a new risk for airlines: not only the skyrocketing price of fuel, now the supply of fuel has become an unknown quantity since the war in the Middle East closed the Strait of Hormuz (see the Sole 24 Ore of 31 March). In the deepest crisis since the air transport pandemic that has already led to thousands of flight cancellations in the Gulf area due to the closure of airspace, the consequences of the continuing crisis are spreading like wildfire to Europe with the risk of grounding hundreds of planes due to lack of fuel.
The alarm of European airlines
Europe's two most important airlines, the low-cost Ryanair and Germany's Lufthansa, have raised the alarm about supply risks at their European hubs. The first consequence could be the grounding of up to 40 planes in the middle of the summer season in the case of Lufthansa. No decision has been taken at the moment, but according to CEO Carsten Spohr the increase in fuel costs will also affect ticket prices. Chancellor Merz's government has already intervened by approving a plan to reduce the air traffic tax from July in an attempt to revive the aviation sector.
The second alarm comes from Ryanair's number one, Michael O'Leary according to whom the supply of jet fuel to Europe could be disrupted from June if the conflict in the Middle East does not end by next month, potentially forcing the airline and its competitors to consider cancelling flights for the summer season. "If this (the conflict) were to continue until the end of April, we would risk a supply disruption in early June. Should it continue into May, we don't know what will happen,' O'Leary said. If there was a risk of 10% or 20% of fuel supplies in June, July or August, we and other airlines would have to start considering cancelling some flights or reducing capacity'.
Supply risks start in April
The statements by European airlines follow the words of the director general of the International Energy Agency, who said that oil supply disruptions will increase in April and begin to affect the European economy, with shortages of aviation fuel and diesel.
Regardless of whether the conflict continues to escalate or a ceasefire agreement is reached, the second half of April is shaping up to be the critical period in which the impact of the war will be felt on the European aviation energy supply chain: a shortage that is reflected in prices, which have reached their highest level in 40 months.
