Airlines worldwide are cutting hundreds of thousands of summer flights due to the sharp rise in the price of jet fuel. Oil (petroleum) and its derivatives have risen in price considerably since the United States and Israel attacked Iran.
Lufthansa of Germany says that it will cut 20,000 short-haul flights in Europe this summer. The airline says that rising fuel prices have made many journeys “unprofitable.”
Since the US-Israel war with Iran began, the price of jet fuel has more than doubled. The war has slowed down the production of jet fuel and its transportation across the Middle East, especially through the Strait of Hormuz, which has been blocked.
Expect ticket prices to rise
According to BBC News, Delta and KLM-France have temporarily cut some journeys while other companies have decided to pass on the higher costs to customers, that is, raise ticket prices.
Industry experts are telling travellers to expect further cancelled flights and price rises as the war continues.
In Europe, which is a major consumer of aviation fuel, half of the continent’s requirements are imported. Most of its imports are transported through the Strait of Hormuz.
Lufthansa made the following announcement in a press release:
“The cancellation of flights previously operated by Lufthansa CityLine reduces Lufthansa Group’s summer capacity by one percent of available seat kilometers (ASK).”
“In total, 20,000 short-haul flights will be removed from the schedule through October, equivalent to approximately 40,000 metric tons of jet fuel, the price of which has doubled since the outbreak of the Iran conflict.”
In the US, United Airlines said that it could raise airfares by as much as 15% to 20%. According to the airline’s executives, higher ticket prices are necessary to preserve margins.
Fewer people vacationing abroad
In an article published by BBC News and written by Alex Dunlop and Alice Cunningham, British holiday companies have seen an increase in people paying for summer vacations at home rather than abroad. Reasons vary, from tighter budgets to expected increases in air ticket prices. Some people are also worried about flight cancellations while abroad and not being able to fly back home.
Will tourism fall in Spain?
Nearly 20 million Britons visit Spain each year, mainly in the summer months (June to September). If overseas travel is falling in the UK, what will be the effect on Spanish tourism, jobs, and Spain’s economy?
Not many people have expressed concern publicly so far, but if the Iran war continues, there will undoubtedly be mounting unease. On a positive note for Spain, mass cancellations of holidays in the eastern Mediterranean could result in greater bookings in the west.
