Jet fuel crisis: Lufthansa cancels 20,000 flights, United mulls 15-20% fare increase

Lufthansa will cancel 20,000 short-haul flights across Europe this summer, saying many routes are no longer financially viable due to surging fuel costs, the BBC reports.  

The price of jet fuel has roughly doubled since the outbreak of the US–Israel conflict involving Iran, as disruptions in the Middle East have affected production and supply routes.

Other European carriers, including Air France-KLM and Delta, have also scaled back some services, while many airlines are increasing fares to offset higher operating expenses.

As previously reported, experts are warning that passengers may face even higher ticket prices and additional cancellations if the conflict drags on.

The Gulf is a key supplier of aviation fuel, providing around half of Europe’s imports.

READ MORE: Jet fuel crisis deepens as Europe faces shortages; airlines cut flights worldwide

Most of these shipments pass through the Strait of Hormuz, which Iran has effectively shut down following U.S. and Israeli strikes.

Lufthansa said Tuesday that its planned flight reductions would save about 40,000 metric tons of jet fuel, with most of the savings coming from suspending its CityLine operations.

As a result, the airline will temporarily halt flights to and from destinations including Heringsdorf, Cork, Gdańsk, Ljubljana, Rijeka, Sibiu, Stuttgart, Trondheim, Tivat, and Wrocław.

United: fares may rise up to 20%

United Airlines CEO Scott Kirby, meanwhile, said Wednesday that ticket prices could rise by roughly 15-20 per cent as the airline responds to a sharp increase in jet fuel costs.

His comments suggest the industry may soon face a key test of how much higher fares travellers are willing to tolerate amid ongoing swings in oil prices.

Speaking during the company’s earnings call, Kirby added that United plans to recoup the full impact of higher fuel expenses as quickly as it can.

The airline is working toward fully passing those costs on to customers while aiming to achieve double-digit pre-tax margins next year.

"Yields need to increase by about 15 per cent to 20 per cent," Kirby said, as reported by Reuters, adding the company is assuming fuel prices could remain elevated for longer.

United has apparently already begun raising prices, implementing five fare increases late in the first quarter along with higher baggage fees, which have started to offset rising fuel costs.

Kirby ⁠said the airline has not yet seen a drop in demand, even as prices increases, but acknowledged that higher fares would eventually test consumers.

Capacity cuts in Canada

In Canada, Air Transat, on April 22, became the latest carrier to trim 2026 capacity as it responded to ongoing volatility in aviation fuel prices.

“The recent volatility in aviation fuel prices reflects an exceptional environment affecting the entire sector. We are closely monitoring the situation, as cost pressures continue to be felt across the industry," said Annick Guérard, president and chief executive officer at Transat A.T., in a statement.

"We will continue to optimize our program based on demand, which remains strong. Additional measures may be implemented depending on how the situation evolves, beyond our control."

As reported, the airline has revised its 2026 program, reducing planned capacity by six per cent between May and October.

Other Canadian carriers responding to rising costs. 

As PAX previously reported, WestJet has trimmed capacity this spring by consolidating flights on lower-demand routes and shifting the travel period for some seasonal services, while Air Canada has suspended six routes after saying some flights were no longer economically feasible.

Air Canada, Air Canada Vacations, WestJet (inclusive of Sunwing), Porter Airlines, Air Transat, and Flair Airlines have all recently signalled that they will raise ticket prices or introduce fuel surcharges as a way to cope with escalating fuel costs.

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