Summer flight crunch
- Europe and other regions face a likely summer travel squeeze as jet-fuel shortages force airlines to change schedules. - Lufthansa plans to cut about 20,000 flights after jet-fuel prices jumped more than 70% since the Iran war. - Passengers should expect cancellations and pricier seats on marginal or seasonal routes as carriers including Air Canada and Delta adjust capacity. (nytimes.com) (thepointsguy.com)
Airlines are cutting summer flights as jet-fuel costs surge and supplies tighten, with Europe facing the sharpest squeeze. (cnbc.com) Lufthansa Group said on April 22 that it would cancel 20,000 short-haul flights through October, targeting routes it called unprofitable. The company said the cuts equal about 1% of normal summer capacity and should save more than 40,000 metric tonnes of fuel. (euronews.com) Jet fuel prices rose nearly 73% to $4.17 a gallon by April 21 after access through the Strait of Hormuz was largely closed at the end of February, according to data cited by The Points Guy. Delta Air Lines Chief Executive Ed Bastian said in April that the carrier was “meaningfully reducing capacity” while fuel stays elevated. (thepointsguy.com) The pressure starts with a chokepoint: the Strait of Hormuz carries about 20% of the world’s oil supply and roughly 25% to 30% of global jet fuel flows, according to Tourism Economics. Europe and Asia rely more on imported fuel than the United States, leaving their airlines more exposed if deliveries slow or prices spike. (cnbc.com) That is colliding with the calendar. Europe had about six weeks of jet-fuel supply left as of last week, the International Energy Agency said, just as airlines were heading into the peak summer booking season. (cnbc.com) Carriers are responding first by trimming the least efficient flying. The Points Guy reported that airlines including Air Canada, Air New Zealand, Cathay Pacific, KLM, Lufthansa, SAS, United Airlines and WestJet have slowed growth or cut flights, often by dropping off-peak frequencies before ending routes entirely. (thepointsguy.com) Air Canada said on April 17 that jet-fuel prices had doubled since the start of the Iran conflict and that some routes were “no longer economically feasible.” It suspended Fort McMurray-Vancouver from May 28, Yellowknife-Toronto from Aug. 30, and several New York-area flights from June 1, with total capacity reduced by about 1% of annual available seat miles. (aircanada.com) For travelers, the first signs are likely to be fewer choices and higher fares on thinner routes. Lufthansa has already dropped service to Bydgoszcz, Rzeszów and Stavanger, while other airlines are consolidating flights through major hubs to keep long-haul networks running. (euronews.com) European officials have said high fuel prices do not erase passenger-rights rules on delays and cancellations. That means airlines can cut schedules to save fuel, but they still face compensation and rebooking obligations if disruptions hit this summer. (euronews.com) The summer timetable is still being rewritten route by route, not by a single industry shutdown. But with fuel costs up sharply and inventories under pressure, the cheapest and most marginal seats are disappearing first. (thepointsguy.com)
