Total capacity for May has already dropped from 132million to 130million, with bosses braced for worse as tensions explode in the Gulf
Scrambling airlines have slashed two million seats from this month’s flight schedules amid fears jet fuel is plummeting to “critically low levels”.
Total capacity for May has already dropped from 132million to 130million, with bosses braced for worse as tensions explode in the Gulf. European jet fuel supply is facing “extreme tightness” because of the Strait of Hormuz closure.
Experts fear the UK could be among the worst hit, with investment bank Goldman Sachs saying we are “most exposed” and could face fuel rationing. It said: “The UK is the largest net importer of jet fuel in Europe, and it holds no strategic reserves.
“As a result, inventories in some countries, especially the UK, could fall to critically low levels, increasing the likelihood of rationing measures.” Iran has ramped up attacks on ships and oil sites, sending prices soaring again.
Gulf airlines Qatar, Etihad and Emirates have been hardest hit, but Lufthansa, Air France-KLM and SAS are also cutting routes and axing flights.
Ryanair boss Michael O’Leary warned rival airlines are now “desperately” hunting for services to slash. He insisted his airline is “the best insulated, most hedged airline in Europe” and vowed not to impose price increases or surcharges on its customers.
British Airways has warned it will have to hike ticket costs. Jet fuel prices are soaring again, jumping to a global average of £134 a barrel after weeks of falls.
Ministers have already tweaked rules to let airlines combine passengers onto fewer flights to save fuel. But that could spark chaos for travellers who face last-minute changes to their holiday plans.
Consumer watchdog Which? blasted the move, warning it could leave passengers “holding the bill” if flights are switched or scrapped. Prime Minister Sir Keir Starmer has admitted Brits may have to rethink their summer holidays if the crisis deepens.
The government has already begged the four remaining jet fuel refineries in the UK to do everything they can to maximise supply.