Global airlines cut 9.3 million seats and raise fares as Iran war drives jet fuel prices up 80%
Global airlines have cut 9.3 million seats for June through September and raised fares as jet fuel prices surged more than 80% since the US and Israel launched their war on Iran in late February, according to aviation analytics firm Cirium. Spirit Airlines permanently ceased operations on Saturday, a move widely blamed on soaring fuel costs. IATA Director General Willie Walsh warned that parts of Europe and Asia could see jet fuel shortages in the coming weeks.
Global airlines have cut 9.3 million seats for the June-through-September period and raised fares as jet fuel prices surged more than 80% since the US and Israel launched their war on Iran in late February, according to aviation analytics firm Cirium.
Spirit Airlines permanently ceased operations on Saturday, a move widely blamed on soaring fuel costs. Qatar Airways slashed two million seats scheduled for June through October, while Emirates cut 700,000 seats and Etihad Airways cut 450,000 seats, according to Cirium data. Lufthansa canceled 20,000 flights scheduled for the coming months.
The average international airfare from the US was $1,101 in the last week of April, up 16% year-on-year, according to travel search aggregator Kayak. Domestic fares in the US rose 24% year-on-year, Kayak data showed.
International passenger demand fell 0.6% worldwide in March compared with the previous year, according to the International Air Transport Association (IATA). Overall demand rose more than 2% on the back of strong domestic markets, IATA said.
IATA Director General Willie Walsh warned that parts of Europe and Asia could see jet fuel shortages in the coming weeks. “Everybody’s watching what’s happening with jet fuel – both supply and pricing,” Walsh said in a statement. “So far, the summer is shaping up to be a normally busy time for travel. That’s positive news, but airline resilience is being tested and stabilising the supply and price of fuel is crucial.”
The Strait of Hormuz has been effectively closed for nearly 10 weeks amid an uneasy truce between the US and Iran, disrupting fuel supplies that account for around 30% of kerosene demand in the European Union, according to the European Federation for Transport and Environment.
Spanish low-cost carrier Volotea added a surcharge of up to €14 ($16.50) for kerosene price changes, levied seven days before departure depending on fuel price developments. Facua, a Spanish consumer protection organization, filed a formal complaint against Volotea over the surcharge. “If this is not stopped quickly, there is a risk that other airlines could also commit similar violations,” said Facua head Ruben Sanchez.