About a quarter of the world’s jet fuel passes through the Strait of Hormuz, and the cutoff of shipping there due to the war in Iran could cause airlines to cut flights and raise prices this summer to compensate for short fuel supply and high costs.
In an early sign of the impact on air travel due to the U.S. and Israeli attacks on Iran and the Islamic Republic’s retaliation, the Lufthansa Group announced this week that it will cancel 20,000 “unprofitable short-haul flights” in order to conserve about 13 million gallons of jet fuel that can be allocated to more profitable routes. The group includes Lufthansa, Austrian Airlines, Brussels Airlines, ITA Airways and SWISS.
Jet Fuel Shortage to Hit Outliers First
Experts predict that the travelers most affected by the fuel-related cancellations are likely to be those traveling to secondary or tertiary airports in Europe, with flights to major hubs likely the last to feel the impact.
Air Transat, Air Canada, WestJet, United Airlines, Cathay Pacific, Air New Zealand and SAS are among the other airlines that have cut flights in response to rising fuel costs. American Airlines recently said it expects to spend $4 billion more on fuel.
Separately, the head of the International Energy Agency, Fatih Birol, said that Europe may have just six weeks’ worth of jet fuel supply left. About 75 percent of the jet fuel consumed in Europe comes from the Middle East.
Jet fuel prices have more than doubled since the war began on Feb. 28, and airfares are already on the rise as a result. According to the travel booking site Kayak, average U.S. domestic airfares—already priced far higher than in 2025—have increased from $335 on Feb. 23 to $358 on April 13, while average international airfares have surged from $778 on Feb. 23 to $1,064 on April 13.
Airlines have also recently raised checked-bag fees and added surcharges to offset higher fuel prices.
