Airlines Grapple with Fuel Supply Crisis Amid Iran Conflict

The ongoing conflict involving Iran has plunged air travel into its worst crisis in years, severely impacting airlines like Qantas, Lufthansa, and Virgin Atlantic. With fuel supplies constricted and costs skyrocketing, airlines face tough measures, including fare hikes and route cuts, while seeking intervention from the EU.

Air travel is experiencing its most severe crisis in years, as the conflict involving Iran prompts warnings from major airlines like Qantas Airways and Lufthansa about escalating costs. Virgin Atlantic, affected by the Iran conflict's impact on fuel supply, flags an impending crunch, exacerbating struggles for airlines worldwide.

The conflict has disrupted routes between Asia and Europe, which traditionally depended on Gulf hubs. The doubling of jet fuel prices and constrained supplies have strained carriers. Since U.S.-Israeli strikes on Iran began, airlines have increased fares, imposed fuel surcharges, and curtailed routes to manage the crisis.

With jet fuel supply constraints and costs presenting ongoing challenges, airlines are urging for EU intervention. Measures such as EU-level kerosene purchasing and relief in aviation taxes are being sought. Analysts predict possible consolidations within the industry as stronger airlines potentially absorb weaker ones.

(With inputs from agencies.)