European airlines hit by jet fuel surge and route shifts

European airlines are dealing with a sharp rise in operating costs and renewed route disruption as of April 29, 2026, as the conflict in Iran continues to reshape travel patterns across the Middle East and beyond. Carriers are adjusting summer schedules and pricing as they manage longer routings, higher fuel bills, and uncertainty around supply conditions.

Officials and industry participants have linked the latest strain to two connected pressures: disrupted air corridors that affect flight planning and a steep increase in jet fuel prices. The situation is being described as the most significant test for the aviation sector since the COVID-19 pandemic, coming as airlines prepare for the peak summer holiday season.

Jet fuel prices rise nearly 84% since Feb. 28, 2026

Jet fuel prices have climbed by nearly 84% since February 28, 2026, according to the information provided. That increase raises the cost of each flight and can quickly affect profitability, particularly on long-haul routes where fuel is a larger share of total expenses.

Many airlines have limited the immediate impact through fuel hedging, which can lock in prices for a period of time. However, those hedges are starting to expire, leaving carriers more exposed to current market prices and increasing the risk that higher costs will flow through to ticket pricing and capacity decisions.

Air France-KLM, IAG, and Lufthansa adjust pricing and capacity

In response to the changing cost base and operational constraints, some airlines have already moved to adjust ticket prices and reduce flight capacity. The carriers named as taking such steps include Air France-KLM, IAG, and Lufthansa.

These actions reflect a balancing act ahead of the summer season: airlines are seeking to protect margins while still meeting demand, even as route disruptions can add complexity to network planning and aircraft utilization.

Concerns over potential shortages in Europe and Asia

Alongside price pressure, concerns are rising about the possibility of jet fuel shortages, particularly in Europe and Asia, if the conflict persists. At the same time, current supply is described as robust, indicating that the shortage risk is tied to how long disruptions continue rather than an immediate lack of product.

For airlines, the uncertainty matters because fuel availability and logistics can influence where aircraft can be scheduled efficiently, how much contingency planning is required, and whether additional costs emerge from sourcing fuel under tighter conditions.

Gulf hubs see steep declines, while global capacity stays higher

The disruption has been especially visible in Gulf aviation markets. Gulf airlines recorded a 50% year-on-year drop in flights operated in March, and bookings for Q2 and Q3 via major Gulf hubs were down 42.5%, based on the figures cited.

Even with those regional declines, global passenger capacity is reported to be up nearly 2% in 2026 compared with 2025. That contrast points to uneven impacts across regions, with some parts of the industry absorbing the shock while others face sharper reductions tied to route geography and hub dependence.