Global airlines have reduced flight schedules by over two million seats in May due to concerns over Middle East conflicts disrupting jet fuel supplies. Gulf carriers and European operators are among the hardest hit, with Lufthansa and Air China leading cancellations. Airlines are implementing price hikes and fuel surcharges to cope with rising costs, while the US military escalates operations in the Strait of Hormuz.
Airlines worldwide have significantly reduced their flight schedules in response to escalating tensions in the Middle East, which threaten to disrupt global jet fuel supplies.
Over the past two weeks, carriers have cut more than two million seats from May's schedules, with the total number of available seats dropping from 132,619,704 in mid-April to 130,674,864 by late April, according to data from Cirium. The number of flights has also decreased by over 13,000 during the same period, from 859,167 to 846,162.
Gulf airlines, including Qatar, Etihad, and Emirates, have been particularly affected by airspace closures and rising fuel costs since the conflict began on February 28. Lufthansa has led the cancellations, cutting 20,000 flights between May and October, while Air China has axed nearly 500,000 flights, including domestic services. European operators such as Air France-KLM and SAS have also scaled back their schedules, and US airline Spirit has collapsed, citing rising oil prices as a key factor.
Ryanair's CEO, Michael O'Leary, has warned that major European airlines are now urgently seeking flights to cancel, with further reductions expected in the coming weeks. The situation is exacerbated by a fragile truce in the Middle East, which remains under strain following exchanges of fire between the US and Iran in the Gulf. The Strait of Hormuz, a critical chokepoint for global crude supply, has become a flashpoint, with 20% of the world's oil passing through it.
The US military recently claimed to have destroyed six Iranian small boats, along with cruise missiles and drones, as part of an operation to escort stranded tankers through the strait. Meanwhile, airlines across Europe and Asia are implementing various strategies to mitigate the impact of rising fuel costs. AEGEAN Airlines anticipates a notable impact on its first-quarter results due to suspended Middle East flights and higher fuel prices.
Air France-KLM expects a $2.4 billion increase in its fuel bill this year and has downgraded its capacity outlook for 2025. The group has also announced plans to raise long-haul ticket prices by €50 per round trip to offset fuel costs. EasyJet has warned of a larger half-year pre-tax loss, including an additional £25 million in fuel costs for March.
British Airways owner IAG has stated that it will increase ticket prices to reflect higher jet fuel costs, despite its fuel hedges. Lufthansa has introduced a new low-cost fare option, 'Economy Basic,' which limits free carry-on bags to a laptop bag or small backpack. SAS has canceled 1,000 flights in April due to high oil and jet fuel prices, following cancellations in March. TAP has raised prices to partially offset the impact of fuel price changes on revenue.
TUI has cut its full-year profit outlook and suspended revenue guidance, citing €40 million in extra costs due to the conflict. SunExpress, a joint venture between Turkish Airlines and Lufthansa, will impose a temporary fuel surcharge of €10 per passenger on routes between Turkey and mainland Europe. Turkish Airlines has decided not to distribute any dividend from its 2025 net profit, opting to retain earnings to preserve cash.
Virgin Atlantic is adding fuel surcharges to fares but expects to struggle to return to profitability this year. Volotea has introduced a new pricing policy linking ticket prices to fuel costs, potentially adding a post-purchase surcharge of up to €14 per passenger per flight. The average global jet fuel price has risen to $181 per barrel, according to the International Air Transport Association, marking the first increase in a month
Airlines Middle East Conflict Jet Fuel Crisis Flight Cancellations Fuel Surcharges
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