Global airlines are preparing to slash millions of seats from this month's schedule as the Middle East conflict and soaring jet fuel prices drive up costs ahead of the industry's busiest travel season. Some 13,000 flights have been removed from May schedules worldwide, according to data from aviation analytics company Cirium, equating to approximately two million seats.
Major Airports and Airlines Hit Hard
Istanbul, one of the busiest airports in the world, and Germany's Munich Airport have recorded the steepest declines in traffic. German airline Lufthansa has cut 20,000 short-haul flights via its Cityline subsidiary, while Irish carrier Aer Lingus has cancelled hundreds of flights from its summer schedule. The price of jet fuel has doubled since the start of the war on 28 February, with Air France expecting a $2.4bn (£1.7bn) increase in its jet fuel bill this year and American Airlines expecting its bill to rise by more than $4bn.
Heathrow Relatively Spared So Far
While global cuts are steep, London's Heathrow Airport has so far only seen a net loss of 111 flights. However, the UK government has had to intervene, with Transport Secretary Heidi Alexander relaxing the 'use-it-or-lose-it' slot rules. This allows airlines to consolidate half-empty flights to save fuel without losing future operating rights. Alexander is also promoting staycations, following a prompt from Prime Minister Sir Keir Starmer that people would have to consider changing 'where they go on holiday'.
Critically Low Fuel Levels in UK
While issues persist in the Middle East, UK refineries have been ordered to maximise jet fuel production as part of emergency contingency planning. Analysts at Goldman Sachs warn that the UK is the 'most exposed' nation in Europe due to its high reliance on imports and low inventory levels. In a research note, Goldman Sachs stated: 'The UK is the largest net importer of jet fuel in Europe, and it holds no strategic reserves, leaving commercial inventories as the primary buffer. As a result, inventories in some countries, especially the UK, could fall to critically low levels, increasing the likelihood of rationing measures.'
