Fuel prices also affect airlines - European companies intend to abandon the green agenda
European airline bosses will meet in Brussels in light of the Middle East war and rising oil prices, seeking to oppose the EU's green agenda and what the industry calls onerous rules related to sustainable jet fuel.
Citing a lack of available supply and prohibitively high costs, Europe's airlines are expected to call on regulators to lift mandates for the use of sustainable synthetic aviation fuel (eSAF) starting in 2030.
The green jet fuel industry and environmental groups insist this change is necessary to reduce the sector's dependence on oil.
The conflict in the Middle East, now in its third week, has thrown aviation into chaos, with flights canceled or diverted thousands of miles and much of the airspace over the Persian Gulf still closed due to fears of missile and drone attacks.
Jet fuel prices have risen sharply, adding to operating costs, with European prices doubling and Asian prices rising by almost 80% since the start of US and Israeli strikes on Iran in late February.
Air France-KLM and SAS have already said they will have to raise ticket prices due to the rising cost of jet fuel, while Finnair has warned of the risk of running out of fuel supplies due to the effective closure of the Strait of Hormuz, a major oil transit route.
US airlines warned of higher ticket prices linked to fuel costs as many US carriers failed to protect their costs. However, demand for spring travel remains strong.
Europe's major airlines have largely hedged their jet fuel costs and will be shielded, at least for the next few months, from the price shock caused by the war. IATA predicted in December that European airlines would be the most profitable worldwide, surpassing North American ones this year.
Analysts say European tourists may be flying closer to home to cut down on time and avoid long flights over the Middle East. But it is not yet clear whether the Gulf conflict will result in a post-war shift to European carriers in the long term, given the historical market power of Gulf hubs.
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