European carriers are facing their most severe crisis since the pandemic, as surging fuel prices, driven by ongoing Middle East conflicts, pushing jet fuel costs to multi-year highs and force major strategic overhauls, according to a report by Xinhua from Frankfurt.
In its first-quarter earnings released on Wednesday, Germany’s flagship carrier Lufthansa said it had hedged about 80 percent of its jet fuel needs.
Even so, it expects fuel-related costs in 2026 to rise by €1.7 billion (US$2 billion) – nearly 24 percent above previous forecasts – mainly due to rising energy prices and disrupted global aviation markets. The group plans to offset the burden through higher ticket revenues, network optimisation, and further cost cuts.
“The ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the global economy, the aviation industry and our company,” said Lufthansa CEO Carsten Spohr.
Citing the International Air Transport Association (IATA), Xinhua reported that jet fuel prices surged 106.6 percent year-on-year in March amid escalating geopolitical tensions, with European prices hitting their highest level since 2022.
IATA Director General Willie Walsh noted that while the industry is in better shape than during the 2020 pandemic lockdowns, the current fuel crisis is the most acute shock to global aviation since COVID-19.
A study by Allianz Trade, also referenced by Xinhua, found that Europe produces only half of the kerosene it needs, leaving the region’s aviation sector dependent on imports for the remainder.
Several airlines have introduced measures to cope. Air France-KLM plans to impose a surcharge of up to €50 on long-haul flights, while EasyJet and Ryanair have warned that fares could rise further if fuel markets stay tight. Lufthansa has already raised ticket prices. Allianz Trade analysts estimate that international airfares have already climbed between 5 and 15 percent.
Lufthansa is also evaluating stopover options on long-haul routes to Asia and Africa as a contingency against potential refueling failures at destination airports. Emphasising the severity of the supply crisis, Spohr said, “We can only fly if we have fuel.”
