A MAJOR airline boss has said that the ongoing fuel crisis is causing more problems than Covid did.
AirAsia chief executive Tony Fernandes said the quick increase in jet fuel overnight was “much worse”.
He told the FT: “I thought I’d seen it all with Covid but having seen jet fuel go up almost three times – this is much worse.
“You wake up one day and your major cost has tripled – it was quite a new experience for me and I’ve been through a lot in my life.”
This was backed by the Chancellor of Germany earlier this year who said if it continues, it would affect the European economy as “heavy as we recently experienced during the Covid pandemic”.
The closure of the Strait of Hormuz since March has already caused problems for airlines, due to shortages of fuel.
Airlines have been forced to cancel thousands of seats, with European airlines such as Lufthansa and Scandinavian Airlines already scrapping routes this month.
Globally, major airlines such as United, Cathay Pacific and Emirates have all reduced capacity as well.
Data from Cirium estimated that there were two million fewer seats on sale in May compared to predicted.
American budget airline Spirit Airlines was even forced into administration, citing the higher jet fuel costs as a major cause.
Thankfully, UK airlines are yet to be massively affected, with most tour operators confirming that holidays are still going ahead as planned.
The only disruption is to the Middle East with destinations like Dubai still on the travel ban list.
On The Beach has even launched a new initiative for travellers this summer, where, if their flight is cancelled, they will get a refund on the same day.
However, Ryanair boss Michael O’Leary warned that unless fuel prices dropping, airlines are at risk of failing this summer.
According to Politico, he said: “If pricing stays higher for longer this summer, we think a number of our airline competitors in Europe are going to face real financial difficulties. I think there will be failures.”
To protect passengers from last minute travel chaos, the Department for Transport has also revealed new measures which will allow airlines to cancel flights up to two weeks in advance, without losing their airport slots.
Transport Secretary Heidi Alexander said it would “give families long-term certainty and avoid unnecessary disruption at the departure gate this summer.”
But Which? Travel Editor Rory Boland warned: “Many passengers will understand that disruptions can occur and may be happy to travel a few hours or a day later.
“But for those on short trips or connecting flights it could mean the trip is no longer worthwhile.”