In response to the uncertainty brought by the Iran conflict and the ongoing pressure of rising aviation fuel prices, the UK government announced on the 3rd that it plans to temporarily allow airlines to consolidate flights and centralize passenger loads during the summer travel peak season to reduce the occurrence of last-minute flight cancellations.
According to CNBC, this plan also allows airlines to release some takeoff and landing slots without affecting their rights for the next season.
In its statement, the UK government said: “These temporary measures will allow airlines to consolidate multiple flights to the same destination on the same day.”
Analysts at Société Générale pointed out that the Iran war has led to reduced aviation fuel supplies in the Middle East, and Europe is facing severe logistical challenges.
According to the International Air Transport Association (IATA) jet fuel price monitoring data, as of the week ending April 24, the average price of aviation fuel had risen to $179 per barrel, far above prewar average levels.
Ryanair CEO Michael O’Leary said in an April 30 interview with CNBC that Ryanair is less affected as it has hedged 80% of its fuel costs, but if fuel prices fail to come down, other airlines may be facing a “real bankruptcy crisis.”
US low-cost carrier Spirit Airlines recently announced that after failing to reach an agreement with creditors on a last-minute bailout plan proposed by the Trump administration, the company has cancelled all flights and begun an “orderly wind-down” of operations. Spirit Airlines had long struggled with business challenges, and surging costs such as fuel made the problems worse.
The UK government stated that these contingency measures are intended to give the public more confidence when traveling this summer, by enabling airlines to plan more realistically and finalize flight schedules earlier, thus reducing the chance of travelers encountering last-minute changes at airports.
The authorities added that airlines will also be able to arrange for passengers to transfer to “similar services” earlier, preventing them from facing “anxiety-inducing delays” at the airport.
In addition, the related plan can also avoid airlines operating flights with ticket sales not reaching “a certain proportion,” and reduce the waste of fuel caused by nearly empty flights. (News source: Central News Agency)