UK Airlines Push for Regulatory Changes Amid Looming Fuel Crisis
The trade body Airlines UK has submitted a comprehensive list of demands to the UK government and aviation regulators on behalf of major carriers, including British Airways, easyJet, Ryanair, Virgin Atlantic, TUI, and Jet2. This move comes as the industry braces for potential jet fuel shortages and soaring costs linked to the ongoing war in the Middle East, with airlines seeking to mitigate operational disruptions through significant policy adjustments.
Key Demands in the Crisis Management Plan
According to a briefing document first reported by ITV News, Airlines UK is lobbying for several critical changes. These include suspending the emissions trading scheme to reduce financial burdens and relaxing night flight restrictions to allow for more flexible scheduling if fuel supplies dwindle. Additionally, airlines are pushing to alter passenger compensation rights by classifying fuel-related disruptions as extraordinary circumstances, which would limit payouts to refunds only for cancellations or delays, rather than additional compensation.
The document also reiterates long-standing industry calls, such as scrapping air passenger duty or offering rebates, and easing use it or lose it slot rules that were temporarily relaxed during the Covid-19 pandemic. This would enable airlines to cancel flights without forfeiting valuable airport slots, helping them manage reduced operations more effectively.
Fuel Supply Concerns and Industry Warnings
While the UK government and aviation industry maintain that there is no current shortage of jet fuel and encourage consumers to book with confidence, concerns persist. Some airlines and observers warn that supplies could be strained if disruptions in the Middle East, particularly around the Strait of Hormuz, continue or worsen. The head of the International Energy Agency recently cautioned that Europe has only about six weeks of jet fuel reserves left, and flight cancellations could become imminent if oil supplies are not restored.
To address potential shortages, the Airlines UK briefing proposes practical measures, such as lowering European standards to allow imports of Jet A fuel from the United States—currently restricted due to its higher freezing point—and directing UK refineries to prioritize jet fuel production over petrol or diesel. These steps aim to safeguard aviation fuel supplies and prevent widespread flight cuts and fare increases.
Industry and Government Responses
A spokesperson for Airlines UK emphasized that airlines are operating normally without current fuel supply issues but stressed the need for proactive government action. 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, and that includes providing additional flexibility, they stated. This flexibility, they argued, would help minimize customer disruption and maintain global networks.
In a related development, Lufthansa announced the cancellation of 20,000 flights between May and October to conserve fuel, highlighting the broader industry strain. Willie Walsh, director general of the International Air Transport Association (Iata), underscored the importance of coordinated contingency planning, including slot relief, to manage potential rationing scenarios.
A UK government spokesperson responded by reaffirming ongoing collaboration with fuel suppliers and airlines, stating, We continue to work with fuel suppliers, airlines and international counterparts on our contingency planning, to ensure people keep moving and businesses are supported while the conflict is ongoing. The government's priority remains de-escalating the conflict and preventing passenger disruption.
