Avtur Prices Soar, European Airlines Threatened to Raise Fares

European airlines are back in a difficult period. The soaring price of jet fuel due to the Middle East conflict has made flight costs swell and ticket fares potentially more expensive.

As reported by Xinhua, Thursday, May 7, the European aviation sector is now facing its most severe crisis since the 2020 pandemic. Aircraft fuel prices have risen to their highest level in years and forced a number of major airlines to change strategies.

Lufthansa was one of the most affected. In its I quarter report released Wednesday, the German airline said it had hedged around 80 percent of its avturn needs. However, fuel costs in 2026 are still expected to rise by 1.7 billion euros or around 2 billion US dollars. The figure is almost 24 percent higher than the previous estimate.

Lufthansa plans to cover the additional burden through increased ticket revenue, flight network adjustments, and cost cuts.

"The ongoing crisis in the Middle East, coupled with rising fuel costs and operational constraints, poses a very big challenge for the global economy, the aviation industry, and our company," Lufthansa CEO Carsten Spohr said, quoted by Xinhua.

The International Air Transport Association, or IATA, noted that jet fuel prices jumped 106.6 percent year-on-year in March. In Europe, prices rose to their highest level since 2022.

IATA Director General Willie Walsh said the aviation industry was indeed stronger than during the 2020 pandemic lockdown. However, the current fuel crisis is the sharpest shock to global aviation since COVID-19.

The problem is, Europe is not completely independent of aircraft fuel. A study by Allianz Trade said the region only produces half of its domestic kerosene needs. The rest depends on imports.

The impact is starting to be felt by passengers. Air France-KLM plans to impose an additional charge of up to 50 euros for long-distance flights. EasyJet and Ryanair also warned that ticket prices could rise again if fuel supplies remain tight. Lufthansa has already raised ticket prices.

Allianz Trade analysts estimate that international flight fares have risen by 5 to 15 percent.

Lufthansa is even evaluating stopover options for long-distance routes to Asia and Africa. The move is prepared in case of fuel filling disruptions at destination airports.

Spohr described the situation in short, but blunt words: "We can only fly if we have fuel."