Budget Airlines Slash Flights Worldwide as Jet Fuel Prices Soar
The global aviation industry is facing a serious shakeup as jet fuel prices soar in the wake of the closure of the Strait of Hormuz, a critical oil transit route disrupted by the ongoing Middle East conflict. The ripple effects are being felt fastest and hardest by budget carriers, which operate on thin margins and have little cushion to absorb surging operational costs.
Ryanair, Transavia, Volotea, AirAsia X, and Air Transat are among the low-cost airlines already trimming their schedules. Air Transat has cut six percent of its May-to-October flights, while AirAsia X, Southeast Asia’s largest budget carrier, slashed fares raising ticket prices by up to 40 percent and cut about 10 percent of its flights. German aviation giant Lufthansa made the most dramatic move, cutting 20,000 flights through October and suspending its regional feeder airline, CityLine.
Summer Holidays Under Threat
The timing could not be worse. As jet fuel prices soar heading into peak summer travel season, the EU’s energy commissioner Dan Jorgensen warned that many holidaymakers face either cancellations or sharply higher ticket prices. Financial analyst Dudley Shanley of investment bank Goodbody told AFP that further schedule trimming is likely if fuel costs remain elevated.
Not every carrier is retreating. Hungary’s Wizz Air has held its capacity steady, betting rivals will blink first. “You don’t have to run faster than the bear, but faster than the guy next to you,” its CEO Jozsef Varadi said. Meanwhile, experts advise travellers to book early as available seats shrink and prices climb fast.
