Airlines across the world are adjusting to the rising jet fuel prices by considering cuts to the number of their flights after costs have more than doubled in the last few weeks due to the conflict in the Middle East.
The ongoing war and the closure of the Strait of Hormuz are impacting oil supply, causing oil prices to jump from about $2.17 (£1.64) to $4.57 (£3.46) per gallon by March 27, the Argus U.S. Jet Fuel Index reported. Airlines are adjusting, and as Fox News reported, United Airlines CEO Scott Kirby said the carrier will cut about 5% of planned flights in the near term as fuel costs surge, warning that if prices persist, jet fuel alone could add $11 billion in annual expenses.
The company is also scaling back service during off-peak periods and suspending select international routes, including Israel and Dubai, due to the conflict, the same outlet said.
European airline chiefs, including executives from Lufthansa and Air France-KLM, have warned Brits and other tourists of higher prices as a result.
The crisis is expanding beyond the U.S., and fares could go up if the conflict goes on, European airline chiefs said. Air France-KLM is planning to raise long-haul ticket prices, while Cathay Pacific and other Asian carriers are increasing fuel surcharges. SAS said it is ready to cancel around 1,000 flights in April due to rising costs, while Qantas and Thai Airways are also making changes to their fares and schedules.
Meanwhile, The Iranian Parliament’s Security Commission has approved a plan to impose tolls in the Strait of Hormuz, hours after Donald Trump issued a new blistering threat to the country. On Monday, a member of the National Security Commission announced the plan had been given the go-ahead. The plan includes eight key points, the news agency Fars, often described as close to the Islamic Revolutionary Guard Corps (IRGC), reports. Among other provisions are named the « safety of naval vessels », environmental issues and the prohibition from passage of US and Israeli vessels.
Iran is now demanding sovereignty over the Strait of Hormuz, which is a key waterway that sees the passage of around 20% of the world’s oil supply as well as a significant portion of liquefied natural gas.
Iran’s plan comes after President Donald Trump said on Truth Social: « The United States of America is in serious discussions with A NEW, AND MORE REASONABLE, REGIME to end our Military Operations in Iran. Great progress has been made but, if for any reason a deal is not shortly reached, which it probably will be, and if the Hormuz Strait is not immediately ‘Open for Business,’ we will conclude our lovely ‘stay’ in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!), which we have purposefully not yet ‘touched.’
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