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Jet-Fuel Shock Forces Airlines to Cut Flights and Raise Prices

The Iran conflict has choked supplies through the Strait of Hormuz, a route that carries about a fifth of seaborne oil, doubling kerosene costs.

Overview

  • Industry data show about 13,000 flights were removed from May schedules worldwide, and Lufthansa also pulled roughly 20,000 short‑haul connections from its summer plan.
  • Ticket prices have already risen by up to 15% on international routes, according to Allianz Trade, which warns late bookers will feel the squeeze into peak season.
  • Lufthansa says higher kerosene prices will add about €1.7 billion to its 2026 costs and reports fuel hedging that covers roughly 80% of this year but only about 40% for 2027.
  • Airlines are conserving fuel by using smaller jets on short routes, tanking extra where supplies are tight, and planning refueling stops, which can add delays and reduce choice.
  • Germany’s economy ministry says the country faces no physical energy shortages and is pursuing supply talks that include offers of kerosene and gas support from Israel.