Cost

The global air travel crisis has spread further as Lufthansa and KLM became the latest airlines to announce flights axed to and from major destinations, including London Heathrow

Hundreds of flights have been cancelled by two major airlines amid warnings Europe has just a “few weeks” of jet fuel left.

Germany’s flag carrier airline Lufthansa is suspending its CityLine services from tomorrow, including flights to and from London, in response to rocketing kerosene costs and an ongoing trade union dispute. Netherlands’ KLM meanwhile confirmed it had cancelled 160 flights over the next month, as the industry grapples with an ‘unprecedented’ oil shock triggered by the closure of the Strait of Hormuz.

It comes after the head of the world ’s energy watchdog has warned that Europe only has six weeks’ supply of jet fuel because of the Middle East conflict.

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Fatih Birol, executive director of the International Energy Agency (IEA), warned there could be flight cancellations “soon” if oil supplies remain restricted by the war, with Iran and the US jostling for control for the vital Strait of Hormuz waterway.

Mr Birol said the conflict is causing “the largest energy crisis” the world has “ever faced”, with Asian nations such as Japan, India and China that rely on energy from the Middle East currently on “the front line”. But he warned that the impact would then “come to Europe and the Americas”, likely as soon as late May. Tourists are encouraged to continue to check before they travel.

Lufthansa’s CityLine services, which fly to a number of destinations across Europe including London, Paris, Frankfurt, Florence, Kraków, Stockholm and Copenhagen, will be cancelled from Saturday. Multiple daily services from Heathrow have already been pulled from the schedule.

A statement from Lufthansa last night said: “In view of significantly increased kerosene prices, which have more than doubled compared to the period before the Iran war, as well as rising additional burdens from labour disputes, the implementation of the corporate strategy is being partially accelerated.

“As a first, immediately effective step, starting the day after tomorrow, the 27 operational aircraft of Lufthansa Cityline will be permanently removed from the schedule to reduce further losses at the loss-making airline.”

Ongoing strikes by pilots and cabin crew belonging to German trade unions have already grounded approximately 90% of all Lufthansa Group flights on the worst days this week, with cancellations reported at Heathrow, Manchester, Birmingham, Edinburgh, Newcastle, and Glasgow.

KLM announced “a number of adjustments to its flight schedule for the coming month” on routes which are “no longer financially viable to operate”. The Dutch airline said this was due “rising kerosene costs”, adding: “There is no kerosene shortage.”

Meanwhile, schedule data published by AeroRoutes this week showed that Norse Airlines has cancelled bookings for its planned Los Angeles flights this summer from London Gatwick, Paris Charles de Gaulle, and Rome Fiumicino.

Jet prices have more than doubled since the beginning of the Iran war on February 28, causing the largest wave of cancellations at many major international airports since the Covid pandemic.

WASHINGTON — An effort to ramp up U.S. weapons production and build more ships, planes and drones will require a massive upfront investment, President Trump’s budget director told a House committee Wednesday.

The testimony from Russell Vought jump-starts the White House’s push to increase defense spending to nearly $1.5 trillion in the next budget year, up from nearly $1 trillion this year, while cutting health research, heating assistance and scores of other domestic programs by about 10% overall. Such cuts do not cover mandatory spending, which includes such programs as Social Security and Medicare.

The debate over Trump’s proposal underscored the sharp divide that will shape some of the most significant policy debates going into a midterm election that will give voters the ultimate say on the direction of the country.

“For the industrial base to double or triple and build more facilities, not just add shifts, it requires multiyear agreements to purchase into the future,” Vought told lawmakers. “That cost has to be booked in this first year.”

The White House is calling for about $1.1 trillion for defense through the regular appropriations process, which typically requires support from both parties for approval. An additional $350 billion would come through a separate bill that Republicans can accomplish on their own, through party-line majority votes.

Rep. Brendan Boyle of Pennsylvania, the ranking Democratic member of the committee, said he believes in a strong national defense. But he said the idea of increasing defense by more than 40% while cutting programs that people need shows that the Republican administration’s priorities are “out of whack.”

The committee chairman, Rep. Jodey Arrington (R-Texas), predicted the hearing would be more “amped up” than usual, and that proved to be true, beginning with his opening statement focused on criticizing Democrat Joe Biden’s presidency. Arrington said he did not know of any president in his lifetime who “inherited such a complete and utter mess as President Trump did in January of last year.”

Since then, Arrington said, Trump has secured the border, cut taxes and constrained nondefense spending.

It was the beginning of several back-and-forths at the hearing.

“You know how bad this economy is when we hear Joe Biden being invoked, we hear trans people being invoked. I was waiting for Jimmy Carter to be blamed next,” Boyle said in response to Arrington’s opening remarks.

Boyle said consumer confidence is plummeting under Trump and noted a gas station he passed in Philadelphia recently was selling gas at $4.11 a gallon versus less than $3 a gallon some six weeks ago because of Trump’s “war of choice in Iran.”

Rep. Becca Balint (D-Vt.) called the proposed defense spending increase shocking.

“We’ve never in the history of this country seen spending like this, paid for by slashing healthcare, education and housing,” Balint said. “Mr. Vought, yes or no, is $350 billion for the war in Iran lowering costs for Americans?”

“It is certainly not defunding child care. We fully fund child care in this budget,” Vought said, not directly answering the question.

Balint went on to incorporate Trump’s “America first” mantra in her questioning.

She said that $350 billion could pay for an enhanced health insurance tax credit for 10 years and that her constituents are asking how the country can continue to spend money on wars and not find a solution to helping people afford healthcare.

Vought said the president has made clear he was not going to let Iran have nuclear weapons, missiles and a navy that affect U.S. national security.

“He is doing what is necessary to keep us safe, while at the same time trying to pursue diplomacy so that we can get out of wars and lower those costs over time,” Vought said.

Vought said it was unclear how much the administration would seek to fund the war during the current budget year, which ends Sept. 30. That money would be part of an emergency supplemental spending bill and would be on top of the funds the White House is seeking to boost defense spending next year.

“Would it be more than $50 billion?” asked Rep. Veronica Escobar (D-Texas).

“We’re still working on it,” Vought said. “I don’t have a ballpark for you.”

Freking writes for the Associated Press.