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Airlines across the globe are continuing to feel the pinch of the Iran crisis, with not only rapidly increasing fuel costs, but also the access to jet fuel itself. Some airlines are taking evasive action in the middle of this unforeseen crisis, with major carriers canceling thousands of flights with immediate effect.
The war between the United States, Israel and Iran has upturned the global supply chain as precious crude oil is restricted from exiting the Strait of Hormuz. This has seen the price of oil drastically increase to more than $100 a barrel. Jet fuel itself, as reported by Business Insider, has increased by more than $100 since the end of February, and airlines are unable to absorb these price increases alone.
Major Airlines Are Cutting Flights Due To The Availability Of Jet Fuel
Not all countries produce their own fuel, which is now affecting countries that rely on others. As the war continues to drag on, the price of jet fuel continues to increase, and some airlines are preemptively cancelling flights as a precaution, as fuel becomes more scarce. The International Energy Agency noted that the loss of oil supply is almost double what it was a month ago.
The cost of fuel has forced airlines around the world to add temporary fuel surcharges on flights across their network, as the carriers look for ways to support the bottom line as these unexpected operational costs continue to inflate. Another option, which is already being undertaken by some airlines such as Air New Zealand and 
United Airlines, is the choice to cancel flights to brace for what could come next.
Jet fuel supply continues to be at risk, and airlines are having robust conversations about what the future could look like with a tightened fuel supply. Europe’s largest low-cost carrier, Ryanair, is already mulling over the possibility of canceling some flights as the ability to source fuel continues to diminish.
Widespread Jet Fuel Disruption Expected In Coming Months
If the war continues into May, it is widely expected that there will be a supply chain disruption for jet fuel, and airlines are expected to prepare for the worst, with many carriers developing crisis response plans and the decision to temporarily ground aircraft. 
Lufthansa is one of those airlines, with the airline suggesting it may consider grounding up to 40 airplanes until fuel supplies improve.
Scandinavian Airlines, which remains one of the largest carriers in Scandinavia, is considering the axing of more than 1,000 flights across the next few months, due to the sharp increase in fuel costs, which is affecting the world’s aviation landscape. In the United States, United Airlines recently advised its team members that the Star Alliance carrier will prepare to cut flights in the next two quarters.
UA’s Chief Executive Officer, Scott Kirby, said in a memo that the airline must ‘tactically prune’ flights that are unprofitable during the high cost of jet fuel. As a result, the airline plans to shelve several off-peak and red-eye scheduled flights. The airline has also stressed that the current fuel cost would see an extra $11 billion required in expenses that solely relate to jet fuel. This is more than double the airline’s best year in profitability, which was $5 billion.
Ticking Clock: Airlines Warn Jet Fuel Could Run Dry Within Weeks
Carriers are expected to make mass cancellations in response.
Airlines Are Preparing For The Worst
As a precaution, 
Delta Air Lines is also reconsidering where it will fly this summer, with the Atlanta-based carrier deciding to shelve its Los Angeles (LAX) to Anchorage (ANC) route. This decision was made for the airline to align with customer demand, leaving Alaska Airlines as the only airline operating this route non-stop in the busiest travel months.
Air New Zealand has also taken evasive action, with 5% of its total network being cut as the Kiwi carrier continues to struggle with rising fuel costs. The airline, which operates the majority of domestic flights in New Zealand and has a robust network of international services around the Pacific Rim, will, from May, cut more than 1,100 flights from its timetable.
In Asia, Vietnam Airlines is another airline preparing for the worst, with the airline cancelling up to 20% of all flights and the suspension of seven domestic routes. Major airlines such as Cathay Pacific have already introduced temporary fuel surcharges.
