Ministers are developing contingency plans to manage potential jet fuel shortages this summer as UK airlines raised the risk of cancellations this summer due to the Middle East conflict.
Airlines UK, which represents the likes of British Airways, Tui, EasyJet and Virgin, has sent ministers and the Civil Aviation Authority (CAA) a dossier of demands to help alleviate mounting costs hitting the sector ahead of a looming jet fuel shortage.
Among the requests from Airlines UK is for the CAA to suspend rules, so passengers are not eligible for compensation if their flight is cancelled two weeks before take off, although they would still receive a full refund.
Airlines braced for significant disruption
The demand, which is among several – including relieving the burden of the Air Passenger Departure Duty and the requirement to use sustainable aviation fuel – suggests the sector is braced for significant disruption this summer.
It comes amid increasing warnings from Europe of a “very serious crisis” over jet fuel supplies as the standoff between the US and Iran continues to drag on.
The European Union has issued a warning that summer holiday plans are likely to be hit by disruptions, including flight cancellations and soaring costs for tickets due to the ongoing blockage of the Strait of Hormuz.
A fifth of the world’s oil passes through the body of water, including around 75 per cent of Europe’s jet fuel supplies.
Millions of Britons fly to Europe every year, with Spain and Portugal among the most popular destinations along with Italy, France and Turkey.
The UK Government is facing growing demands from the aviation sector to set out an emergency plan to deal with looming jet fuel shortages, as the price of fuel has more than doubled since the start of the Iran war.
A government spokesman said that while UK airlines are “not currently seeing a shortage of jet fuel”, they added: “We are continuing to work with fuel suppliers, airlines and international counterparts to keep flights operating, as well as planning for a range of contingencies.”
‘Many people’s holidays will be affected’
It comes just days after major German carrier Lufthansa announced it was cancelling 20,000 flights, the biggest such cancellation of the crisis so far, in a bid to save 40,000 metric tonnes of jet fuel.
According to travel agent trade association ABTA, some European airlines have been consolidating flights due to the high cost of fuel, by reducing the number of flights to some destinations, where they have multiple flights going to the same place on the same day.
Other carriers have started to apply additional fuel surcharges on existing tickets to help manage with soaring jet fuel prices, including Virgin and Spanish low-cost airline Volotea.
The messaging from the UK in regards to potential summer travel disruption stands in stark contrast to that coming from Europe, which has started to raise doubts over the viability of summer holidays continuing as normal.
Dan Jorgensen, the EU energy commissioner, told Sky News: “Unfortunately, it’s very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets.
“Even if we do everything we can do, if the jet fuel is not there, then it’s not there.”
Jorgensen added: “[Currently] it is primarily a crisis of prices and not yet a crisis of supply, but unfortunately we cannot be sure to prevent a crisis of supply, especially on jet fuel in the future, if the crisis continues.”
Call to holiday at home
The commissioner suggested that if the Strait of Hormuz were to reopen tomorrow, then the summer holiday season was unlikely to be affected, but he warned: “I have to say that even in the best-case scenario the price crisis will still last for quite some time.”
His comments were echoed by the head of Italy’s Civil Aviation Authority, who said Italians should consider holidaying domestically this summer due to the ongoing crisis.
“It is best to recommend holidays nearby, rediscovering beautiful places in our country,” Pierluigi di Palma said.
“For those who still want to risk taking a long trip, it’s a good idea to consider special insurance that can provide reassurance regarding a guaranteed refund in the event of a delayed or cancelled flight.”
An industry source said the UK CAA has the power to rule that the looming jet fuel shortage is an “extraordinary circumstance” and would not lead to passengers receiving compensation under existing legislation.
An Airlines UK spokesman said: “It is vital that Government take the right actions now to ensure the continuation of supply as well as support the UK aviation industry which has been impacted by record high jet fuel prices due to geopolitical events.
“Additional flexibility, should it be needed, is common sense to ensure airlines can operate most efficiently to minimise any potential disruption to customers and maintain long-established global networks.”
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