Airlines trim summer flying
Airlines are already trimming summer schedules and hiking fares after a fuel squeeze tied to the Iran war, with Reuters warning Europe’s summer flights are at risk. (reuters.com) The Guardian reports jet fuel costs have climbed about 125% since the war began, and carriers are responding with capacity cuts and price changes. (theguardian.com) On the carrier level, Xinhua says Virgin Australia will cut domestic capacity by roughly 1%, while regional Asia carriers including Cathay Pacific and Hong Kong Express have announced small but visible May reductions. ( )
Airlines are cutting summer flights and raising fares as jet fuel prices surge after the Iran war disrupted oil and refining flows. (reuters.com) Virgin Australia said on April 15 that it expects an extra A$30 million to A$40 million in fuel costs in the second half of 2026 and will cut total domestic capacity by 1 percent in the June quarter. The airline said jet fuel prices had more than doubled since late February. (english.news.cn) Qantas made a similar move a day earlier, lifting its second-half fuel bill forecast to A$3.1 billion to A$3.3 billion from A$2.5 billion and reducing fourth-quarter domestic capacity by about 5 percentage points. The carrier also said fares had been adjusted to offset the higher bill. (reuters.com) In Hong Kong, Cathay Pacific said it will cancel about 2 percent of scheduled passenger flights from May 16 to June 30, while HK Express will cut about 6 percent from May 11. Cathay also said its Dubai and Riyadh passenger suspensions will stay in place until June 30. (cnbc.com) The immediate problem is not only price. European airlines and airports are also watching fuel availability after the Strait of Hormuz disruption tightened supplies of kerosene, the refined fuel used by jets. (politico.eu) Reuters reported that Europe has shut more than 30 refineries over 25 years, equal to about 16 percent of refining capacity, leaving the region more exposed when imports are disrupted. That has turned a war-driven oil shock into a summer aviation risk. (reuters.com) Analysts told ABC that jet fuel prices in Asia and Oceania had jumped about 150 percent, the biggest regional increase tracked by the International Air Transport Association. Virgin said it is increasing hedging, the practice of locking in fuel prices ahead of time, to limit further swings. (abc.net.au) European carriers have not yet announced continent-wide cuts on the scale feared in early April, but Ryanair chief executive Michael O'Leary said there was a “reasonable risk” that 10 percent to 25 percent of some supplies could be affected if the war continued. Lufthansa said it did not see kerosene shortages at its hubs at this stage. (politico.eu) The next test is May and June, when airlines normally add seats for peak travel. Instead, some are pulling capacity, merging flights and charging more to keep aircraft full while fuel stays scarce and expensive. (abc.net.au)
