Europe's airlines are bracing for turbulence ahead of the usually busy and lucrative summer season, as the U.S. war on Iran chokes off energy supplies through the Strait of Hormuz.
Jet fuel has more than doubled in price since the war began and is increasingly in short supply. The International Energy Agency has warned that Europe could see jet fuel shortages in just a matter of weeks, fueling anxiety among travelers.
"We almost canceled our flight, because I was afraid we couldn't get back from Sri Lanka to Belgium," said one traveler.
"We also travel to Sicily in September, so we hope that that flight is going to continue," another said.
"The costs are higher, so that's a burden," said a third.
The uncertainty is also forcing airlines into drastic short-term planning. Lufthansa has announced it is preemptively grounding roughly 20,000 short-haul flights this summer to cut costs, and RyanAir's CEO says some European airlines could go bust if jet fuel prices remain sky high.
While some operators have seen a 20-percent drop in bookings over the past two months, there is still robust demand for summer travel, according to travel experts, though preferred destinations may change.
"The question will be which destinations will lose which destinations will win, what kind of holiday will people prefer this year. Shorter holidays? Maybe more local?" said Eric Dresin, Secretary General of the European Travel Agents' and Tour Operators' Associations.
The European Commission has pledged a coordinated response to ensure fuel supplies continue to flow. However, analysts said that even if the war comes to a sudden stop, jet fuel prices are unlikely to fall immediately.
"It might take eight months for the market to get back to the old equilibrium and so this type of situation is likely to carry on for some time," said Jamie Shea, a senior fellow at Friends of Europe, an independent not-for-profit Brussels-based think tank.
Spain's tourism minister has urged people to book flights early to avoid potential price surges later in the summer.
The aviation sector contributes more than 120 billion dollars annually to the European economy. Analysts fear that persistent fuel disruptions could have a significant impact on the financial health of airlines, airports and regions heavily reliant on tourism dollars.
Europe's airlines brace for jet fuel crunch as Iran war disrupts supplies
Europe's airlines brace for jet fuel crunch as Iran war disrupts supplies
Israeli Prime Minister Benjamin Netanyahu and visiting U.S. President Donald Trump's son-in-law and envoy Jared Kushner agreed on Monday to establish two working groups to advance the demilitarization of Gaza and address infrastructure and public health needs in the war-devastated enclave, according to a statement of Prime Minister's Office.
The statement was published after the two held a meeting in Jerusalem, which was also attended by Nickolay Mladenov, "high representative for Gaza" of the U.S.-led "Board of Peace."
One working group will focus on the disarmament and demilitarization of Gaza, the statement said, noting that Israel and the "Board of Peace" are "determined" that demilitarization be completed before reconstruction begins.
A second group will focus on sanitation, clean water and other public health issues in Gaza, it said.
Earlier this month, Netanyahu said Israel rejects a Gaza peace roadmap plan presented by the "Board of Peace," maintaining that Israeli forces will not withdraw until Hamas is fully disarmed. Israel would never agree to the establishment of a Palestinian state in either the Gaza Strip or the West Bank, he added.
In an interview following his talks with Netanyahu, Kushner said he believed progress might come in as little as 30 days, and expressed hope that some weapons could begin to be removed and that certain tunnels could be filled in within the following 60 to 90 days. He also warned that if Hamas fails to deliver on commitments, Israel will receive stronger support from the United States and other parties.
Kushner noted the U.S. would not allow reconstruction in Gaza before demilitarization is achieved and would not restrict Israel's right to self-defense if it faces an imminent threat.
Kushner arrived in Israel a day after holding talks with Hamas leader Khalil al-Hayya in Egypt, a rare direct meeting as part of efforts to advance the Gaza ceasefire. He described the talks as very cordial but stressing that any understanding must be backed by concrete actions.
On Monday, Khaled Qaddoumi, Hamas' representative in Iran, said that while the group agrees with the Gaza peace plan's broad goals of a ceasefire and ending the war, armed resistance will continue as long as the Israeli occupation exists. Qaddoumi accused Israel of failing to implement ceasefires and questioned whether the United States possesses the ability to force Israel to comply with any agreement.
Trump said on July 30 that the so-called "Board of Peace" had reached an agreement for the "complete disarmament" of Hamas and all other armed groups in Gaza. A 15-point peace plan released the next day called for Hamas to disarm and Israel to withdraw its troops from Gaza in phases.
Hamas said on July 31 that it will only hand over its weapons after the Israeli military withdraws from Gaza.
Netanyahu, Kushner agree to form Gaza demilitarization, public health working groups
