Major airlines, includingVirginAtlantic, have confirmed flight cancellations amid warnings that Europe only has six weeks' supply of jet fuel because of theMiddle East conflict. Virgin confirmed that it was scrapping flights from London to Riyadh in April, just a year after the route was launched, citing "the latest intelligence, regulatory guidance, demand and operating costs". A number of other fliers have already launched similar measures in anticipation of jet fuel shortages and cost hikes, with many anticipating bigger-than-expected losses as a result.
The German Lufthansa group said this week that it would ground 27 passenger planes in its regional subsidiary, taking immediate effect, and Dutch airline KLM confirmed it would cancel 160 flights in Europe over the coming month. It comes after Fatih Birol, executive director of the International Energy Agency (IEA), warned that Iran's stranglehold on tankers passing through the Strait of Hormuz wascausing "the largest energy crisis we have ever faced".
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Mr Birol told the Associated Press that Europe has "maybe six weeks or so [of] jet fuel left", with Asian countries including Japan, India and China already "on the front line".
Airlines including easyJet which have not yet gone so far as to cancel flights have reported tens of millions of pounds in higher jet fuel prices over the last month because of the Iranian conflict.
The Luton-based firm also said it expects to report a headline loss before tax of between £540 million and £560 million for the six months to the end of March, due to "near-term uncertainty around fuel costs and customer demand".
Dan Coatsworth, head of markets at AJ Bell, said: "So much depends on what happens next with the Middle East crisis. A swift resolution could remove cost pressures and trigger a flurry of bookings.
"A prolonged crisis could see demand dwindle even further and a succession of cancellations if fuel supplies run dry or are rationed in various parts of the world."
Source: Daily Express :: World Feed
