Study Shows Iran War-Triggered Fuel Price Hikes Add $100 to Long-Haul Flight Costs
Environmental group Transport & Environment estimates that the Iran conflict, causing global oil supply disruptions, has increased the fuel cost per passenger on long-haul flights departing Europe by over $104, potentially pushing up ticket prices. The organization states that the rise in aviation fuel prices has added an average of €88 ($104) per passenger for long-haul flights and €29 for flights within Europe.
The analysis compared oil prices on April 16th with those on February 28th, the eve of the conflict between the US and Israel and Iran.
Transport & Environment estimated in an analysis released on Tuesday that a flight from Barcelona to Berlin would see an increase of €26 in aviation fuel costs per passenger, while a long-haul flight from Paris to New York would see an increase of €129.
European airlines are preparing for a challenging spring/summer operating season. Aviation fuel prices have risen sharply to over $100 a barrel since the outbreak of the Iran conflict, and the market is increasingly concerned that fuel shortages could lead to flight cancellations.
The EU will release a response plan on Wednesday, issuing guidance on managing limited supplies of aviation fuel.
Transport & Environment calculated the additional cost per passenger from the fuel price surge by dividing the average fuel consumption of all outbound European routes by the number of outbound passengers.
Executives from several airlines, including Lufthansa, Ryanair, and Air France-KLM, said in March that airlines would likely pass on rising fuel costs to consumers if the Strait of Hormuz were to close for a prolonged period.
Transport & Environment said its calculations show that the additional costs from the fuel price surge are far higher than the costs airlines bear to comply with EU climate change-related policies.
Diane Whitmore, head of aviation at Transport & Environment, said: “The crisis in the Middle East shows our real vulnerability lies in our dependence on imported oil, not the regulations designed to address it.”
Several airlines have called on the EU to relax some climate policies, including the 2030 mandate for the use of synthetic sustainable aviation fuels, and to reconsider upcoming carbon pricing rules.
As part of its policy proposals, the EU will promote energy independence by increasing investment in sustainable aviation fuels.