Iran war drives up fares and fuel, airlines warn

European airlines have warned that the conflict in the Middle East will begin to push up air fares significantly and could disrupt fuel supplies.

The closure of large parts of Gulf airspace is forcing carriers to take longer routes, driving up costs. Aviation fuel prices have already risen sharply. In Europe they are reported to have doubled.

Although airlines have so far protected fuel prices through advance contracts, these will soon expire, leaving them exposed to higher costs. Airline executives are therefore calling on the EU to postpone certain environmental regulations, in particular the mandatory use of synthetic fuels. Brussels, however, has refused.

Some carriers are already announcing higher ticket prices and warning of possible fuel supply problems. At the same time, passengers may increasingly favour shorter flights within Europe. According to industry officials, however, it remains unclear how deeply the conflict will affect the sector as a whole.

(reuters, pir)