"While carriers have partly hedged the price of jet fuel, bosses said they could not keep avoiding passing on additional costs to passengers for long. Long-haul airlines such as Air France-KLM and Lufthansa said they would be adding more flights via Asia with Gulf carriers' hubs either shut or operating at a reduced level since the US-Israel attack on Iran."
"Kenton Jarvis, the airline's chief executive, said they were not seeing any issues with their fuel supply. However, he said passengers should book as early as possible, with hedges on the price starting to unwind, spelling higher fares."
"There were indications that there could also be silver linings in the crisis for Europe's long-haul carriers, if they manage to reassert their global role after ceding ground to the airlines and airport hubs in the Gulf. Lufthansa said it had added 40 flights to Asia to compensate for disruption in the Gulf."
European airlines report that escalating fuel prices from Middle East tensions will necessitate fare increases as their fuel hedges unwind. While carriers have partially protected themselves through hedging strategies, they cannot indefinitely absorb rising costs. Long-haul airlines like Air France-KLM and Lufthansa are adding flights to Asia as Gulf hubs operate at reduced capacity. EasyJet and Ryanair downplay immediate supply concerns but warn passengers to book early. Jet fuel prices have surged 94% above annual averages. The crisis presents opportunities for European carriers to recapture market share from Gulf airlines, with Lufthansa adding 40 Asian flights and Air France-KLM boosting Asian capacity amid strong demand.
#airline-fuel-costs #middle-east-conflict-impact #airfare-increases #aviation-market-competition #gulf-hub-disruption
Read at www.theguardian.com
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