German airline Lufthansa has axed 20,000 summer flights within Europe due to soaring fuel prices, which have made many journeys ‘unprofitable’ for the firm.
It comes as British airlines called on the government to draw up an emergency jet fuel plan, or face the possibility of a summer of holiday chaos.
Lufthansa said the cuts from May until October would save on 40,000 tons of jet fuel.
The move follows last week’s decision to retire the entire 27-aircraft fleet of its subsidiary CityLine ahead of schedule amid surging fuel costs and reduced supply.
The airline said the first 120 flights were cancelled on Monday, partly due to ‘significantly increased kerosene prices’, but also because of ‘additional burdens from labour disputes’.
The 20,000 cancellations will affect hubs operating in Frankfurt, Munich, Zurich, Vienna, Brussels and Rome and ‘reduce the number of unprofitable short-haul flights’.
Explaining the move, Lufthansa said jet fuel costs have ‘doubled since the outbreak of the Iran conflict’.
Airlines UK, a trade body that represents British carriers, said UK ministers have to make preparations now if they want to avoid disruption later, warning of the ‘immediate impact on the UK aviation sector and UK consumers in the event disruption to jet fuel supply continues or worsens’.
British airlines have called on the government to draw up an emergency jet fuel plan. Pictured: Passengers left behind at Milan Linate Airport due to the border control chaos
The EU is sending out guidance to carriers amid the stark rise of the price of jet fuel. Pictured: Large queue forms at Brussels Airport
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The body called for fuel reserves to be built up by making oil refineries produce more kerosene. It also asked the US-grade fuel, which can be used by some aeroplanes, to be imported.
On top of this, Airlines UK called on the government to cut taxes and suspend some environmental regulations.
Just yesterday, the EU announced it would provide guidance to airlines on how to handle issues such as airport slots, passenger rights and public service obligations in the event of jet fuel shortages because of the Iran war.
Apostolos Tzitzikostas, the EU’s transport chief said there were no shortages ‘as of today’ but warned a prolonged blockage of the Strait of Hormuz would be ‘catastrophic’ for Europe and the global economy.
About one-fifth of the world’s oil and liquefied natural gas transited Hormuz before the U.S. and Israel began bombing Iran on February 28.
The EU imports 30% to 40% of its jet fuel needs, with about half coming from the Middle East. The European Commission is due to present a broader package of energy and transport measures on Wednesday.
Tzitzikostas said it would set up a new ‘fuel observatory’ to monitor supplies, starting with jet fuel.
‘If real supply issues arise, our emergency stocks must be put to best use. Any national release of fuel must be done in full transparency to avoid market distortions,’ he told reporters after a meeting of the EU’s transport ministers.
He added there were no signs of ‘widespread cancellations’ in the coming weeks or months. The International Energy Agency warned last week that physical shortages could start as soon as June, but European airlines currently report only higher prices.
A spokesperson for IAG, owner of British Airways and Iberia, said it was ‘not seeing disruption to jet fuel supply in our main airports, but our airlines are already facing rising fuel costs.’
German logistics group DHL said it could secure fuel for its cargo planes in Europe into June, though the outlook for its Asian operations remained uncertain.
As part of the response, the Commission wants to use the crisis to accelerate development of the sustainable aviation fuel (SAF) and synthetic fuels sectors to cut reliance on Middle East imports, Tzitzikostas said, confirming a Reuters report last week.
Global airline group IATA warned last year that SAF production remains too low to meet green fuel targets and costs up to five times more than conventional jet fuel.
The EU’s anti-tankering rules, aimed at stopping airlines from loading excess fuel at cheaper airports, already allow exemptions in case of shortages, but the Commission will clarify the framework on Wednesday.
The Commission is also examining alternative imports, including U.S. Jet A fuel, which has a higher freezing point than the European standard.
‘There is no need at this point to intervene in how people live, work or travel … Europe is ready to welcome all the tourists and guests during the summer period,’ Tzitzikostas said, adding that high fuel prices would not justify waiving passenger compensation for delays or cancellations.
