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European airline company Lufthansa Group says it will cut 20,000 flights over the next six months to save fuel amid skyrocketing fuel prices caused by the war in Iran. The average cost of jet fuel was up 55% as of Monday compared to the day before the initial U.S.-Israeli strikes on Iran. At its peak in April, prices had risen 95%. As a result of the cost increase, the airline company is cutting back, saying the changes would result in jet fuel savings of over 40,000 metric tons. The planned consolidation will impact its six hubs located in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome. The company has already announced cancelations through the end of May. This announcement comes after the head of the International Energy Agency has warned Europe could be facing a jet fuel shortage in as little as six weeks. Around 75 percent of Europe’s jet fuel imports are from the Middle East. The region does not have many of its own refineries, said Louise Burke, the Senior Vice President of Global Aviation and Renewables for Argus Media. The U.S. has some protections, Burke said, because it has jet fuel refineries. It all comes down to the supply chain. It takes time for crude oil, which is held up in the Strait of Hormuz, to arrive at refineries that turn it into jet fuel. That fuel accounts for 20 to 40 percent of a flight’s operating costs, Burke said. Higher fuel costs, higher airfare costsTo offset costs, airlines have put it back onto the consumer, according to Robert Suhs, vice president of worldwide sales at Inventory Locator Service, an online aviation marketplace owned by our parent company Hearst. “When jet fuel cost rises, margins get squeezed and that usually shows up in the form of higher fees,” Suhs said.The four major U.S. airlines, American Airlines, Delta, Southwest and United have already increased baggage fees from $35 for the first checked-in bag before April to now $45. Ticket prices are also on the rise, according to data from the Consumer Price Index. Other airlines may join Lufthansa Group by cutting back on the number of flights they offer to reduce costs. Here’s what to know before booking a flightIf you’re planning on booking a flight soon, experts say to brace yourself for higher ticket prices.Even if the war were to end today, jet fuel prices are likely to remain high for several months.If you’re eager for a summer trip, experts recommend buying it now rather than wait. If you’re willing to spend a little more on your ticket, you can purchase refundable tickets in case prices drop. If you’re eyeing a fall or winter trip, they say to wait and monitor the situation. PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4=
European airline company Lufthansa Group says it will cut 20,000 flights over the next six months to save fuel amid skyrocketing fuel prices caused by the war in Iran.
The average cost of jet fuel was up 55% as of Monday compared to the day before the initial U.S.-Israeli strikes on Iran. At its peak in April, prices had risen 95%.
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As a result of the cost increase, the airline company is cutting back, saying the changes would result in jet fuel savings of over 40,000 metric tons.
The planned consolidation will impact its six hubs located in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome.
The company has already announced cancelations through the end of May.
This announcement comes after the head of the International Energy Agency has warned Europe could be facing a jet fuel shortage in as little as six weeks.
Around 75 percent of Europe’s jet fuel imports are from the Middle East.
The region does not have many of its own refineries, said Louise Burke, the Senior Vice President of Global Aviation and Renewables for Argus Media.
The U.S. has some protections, Burke said, because it has jet fuel refineries.
It all comes down to the supply chain. It takes time for crude oil, which is held up in the Strait of Hormuz, to arrive at refineries that turn it into jet fuel.
That fuel accounts for 20 to 40 percent of a flight’s operating costs, Burke said.
Higher fuel costs, higher airfare costs
To offset costs, airlines have put it back onto the consumer, according to Robert Suhs, vice president of worldwide sales at Inventory Locator Service, an online aviation marketplace owned by our parent company Hearst.
“When jet fuel cost rises, margins get squeezed and that usually shows up in the form of higher fees,” Suhs said.
The four major U.S. airlines, American Airlines, Delta, Southwest and United have already increased baggage fees from $35 for the first checked-in bag before April to now $45.
Ticket prices are also on the rise, according to data from the Consumer Price Index.
Other airlines may join Lufthansa Group by cutting back on the number of flights they offer to reduce costs.
Here’s what to know before booking a flight
If you’re planning on booking a flight soon, experts say to brace yourself for higher ticket prices.
Even if the war were to end today, jet fuel prices are likely to remain high for several months.
If you’re eager for a summer trip, experts recommend buying it now rather than wait.
If you’re willing to spend a little more on your ticket, you can purchase refundable tickets in case prices drop.
If you’re eyeing a fall or winter trip, they say to wait and monitor the situation.
