Airlines still have to pay compensation if flights cancelled due to fuel crisis, EU says
Summary
The European Union says airlines must pay compensation to passengers if flights are canceled due to fuel shortages or high fuel prices, as these are not considered extraordinary reasons. Some airlines, like Ryanair, are not cutting flights because they secured fuel at lower prices, while others have canceled flights due to rising fuel costs linked to the conflict in the Middle East.Key Facts
- EU law requires airlines to compensate passengers if flights are canceled without extraordinary reasons; high jet fuel prices or shortages do not count as extraordinary.
- The UK has eased penalties for airlines canceling flights because of jet fuel shortages, but EU rules still apply in Europe.
- Ryanair said it won’t cancel summer flights because it hedged fuel prices before the Iran conflict raised costs.
- Airlines such as Lufthansa and Aer Lingus have canceled flights due to jet fuel issues.
- The price of jet fuel has nearly tripled since late February because of a conflict involving the US, Israel, and Iran, which disrupted oil shipments through the Strait of Hormuz.
- UK officials say there is no current shortage of jet fuel in the country and are working to prevent flight disruptions.
- AirAsia’s CEO stated the fuel crisis is worse than the COVID-19 pandemic for airlines.
- AirAsia made a $19 billion deal to buy 150 new Airbus jets from 2028, supporting jobs in Northern Ireland where some parts are made.
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