Norse Atlantic cancels LAX routes as fuel crisis deepens

Norse Atlantic Airways canceled all its flights from Los Angeles International Airport (LAX) to Europe in mid-April 2026, according to research from six sources. The cancellation includes direct connections to London Gatwick, Paris Charles de Gaulle, and Rome Fiumicino airports, as reported by six sources. Norse Atlantic Airways sent emails to affected passengers stating the cancellation is due to an extraordinary surge in oil prices and unpredictable fuel supply constraints. A spokesperson for Norse Atlantic stated: 'This cancellation is due to the unforeseen global fuel crisis, and we unfortunately – with [a] heavy heart – had to cancel our beloved LAX routes with too high fuel risk exposure.' Norse Atlantic has also scrapped its route linking London Gatwick with Los Angeles, according to research from six sources. Jet fuel prices skyrocketed to $200 per barrel after disruptions in the Strait of Hormuz, as reported by six sources.

The broader airline industry is facing severe disruptions and fare hikes. According to major media reports, Norse Atlantic Airways CEO Eivind Roald has cancelled some flights from London Gatwick Airport to Los Angeles due to jet fuel prices skyrocketing more than 100% after a few days. Dozens of airlines across the world have been forced to cancel flights as Iran’s chokehold on the Strait of Hormuz continues, major media reports indicate. Legacy carriers such as United and Delta have increased fares by up to 40% in Southern California following Norse’s withdrawal, according to AviacionOnline. Major U.S. carriers—including Delta, United, Southwest, and JetBlue—have hiked checked baggage fees, as reported by six sources. Fuel costs have soared to comprise more than 55% of operating expenses on these routes, compared to the typical 35-45% for low-cost long-haul carriers, according to AviacionOnline. Norse Atlantic Airways achieved a record Total Revenue per Available Seat Kilometer (TRASK) of 6.4 U.S. cents in March, according to research from six sources. According to Daily Mirror - Main, Eivind Roald described that Norse Atlantic will continue flying from London Gatwick, Athens, and Rome this summer with no plans to cancel more flights, but he expects more cancellations from competitors, especially on short-haul flights in Europe. The UK government issued a statement saying there is no current need for passengers to change their travel plans, according to the Department for Transport, as reported by major media. The EU energy commissioner Dan Jorgensen said it is very likely that many people's holidays will be affected by flight cancellations or very expensive tickets. According to Airlines UK, airlines operating in Britain 'are currently not seeing disruption to jet fuel supply'. However, according to www.examinerlive.co.uk, transport analyst Andrew Lobbenberg described that airlines are not communicating transparently.

The energy market shock is unprecedented. Research from six sources indicates that the conflict in the Middle East has created the most significant energy shock of recent years, with military actions severely disrupting oil and gas flows across the region. The International Energy Agency stated that energy markets face the largest supply disruption in history. The Executive Director of the International Energy Agency called this the greatest threat to global energy security ever recorded. Brent crude futures jumped by more than 60% in March 2026, according to research from six sources. The European natural gas benchmark, Dutch TTF, also rose by over 60%, according to research from six sources. Oil producers in the Gulf region cut total oil production by more than 11 million barrels per day, according to research from six sources. Before the war, roughly 20 million barrels per day moved through the region. Now, only a trickle reaches the open ocean, according to research from six sources. Producers lack sufficient pipeline capacity to bypass the affected waterways, according to research from six sources. The Strait of Hormuz is the most critical trade artery for global energy, with around 25% of the world’s seaborne oil trade transiting it in 2025, according to research from six sources. Saudi Arabia and the United Arab Emirates possess the only operational bypass pipelines, with capacity between 3.5 million and 5.5 million barrels per day, according to research from six sources. Global supply of liquefied natural gas dropped by around 20% recently, according to research from six sources. Disrupted transit routes reduced daily supplies from Qatar and the United Arab Emirates by over 300 million cubic meters since early March 2026, according to research from six sources. Attackers struck the Ras Laffan facility in Qatar on March 2, 2026, and it remains completely shut, according to research from six sources. The war started on February 28, 2026, with the launch of the U.S.-Israel-Iran war, according to research from six sources. Brent crude surged to nearly $120 per barrel in the opening week, then settled above $100 per barrel with occasional dips into the $90s, a cumulative increase of more than 40% over pre-war levels, according to research from six sources. Violent sell-offs hit major global equity markets amid mounting fears of stagflation, according to research from six sources. The current disruption is comparable to the oil crisis following the October 1973 War, according to research from six sources. No formal oil embargo has been declared, but the practical outcome is nearly identical to an embargo, according to research from six sources.

The geopolitical context involves U.S.-Iran conflict and peace efforts. According to major media reports, Donald Trump is ordering the US Navy to blockade Iranian ports. Research from six sources indicates that the Trump administration continues to insist on practically impossible demands for peace. A new Supreme Leader in Tehran is described as more rigid and radical than his predecessor, according to research from six sources. Mediation and de-escalation efforts continue, and the U.S. position has shown signs of movement, from talk of regime change to negotiations in Islamabad, according to research from six sources.

The International Energy Agency has issued dire warnings. The IEA warned that Europe possesses merely six weeks' worth of jet fuel reserves before supply shortages materialise. Fatih Birol, executive director of the IEA, cautioned that flight cancellations would occur imminently unless Middle Eastern oil supplies resume within weeks.

The IMF has assessed the economic outlook. IMF First Deputy Managing Director Daniel Katz warned that the escalating conflict carries significant risks for the global economy, particularly in terms of inflation and growth. Katz said that prior to the recent escalation, the global economy had been expected to continue expanding at a solid pace. The ultimate economic consequences will depend largely on the duration and intensity of the conflict. Katz noted that the IMF will examine direct effects on the region, including physical damage to infrastructure and disruptions to tourism, air transportation, manufacturing, and energy facilities. A prolonged disruption in energy markets, particularly a potential closure of the Strait of Hormuz, could lead to serious economic consequences. Katz pointed to recent spikes in oil and natural gas prices, as well as moderate increases in interest rates. If the rise in energy prices proves temporary and inflation expectations remain well anchored, central banks may look through the shock. A more persistent energy shock that destabilizes inflation expectations could trigger a monetary policy response.

Several uncertainties remain. The exact current price of jet fuel and how it compares to pre-crisis levels is not confirmed, with some sources citing $200 per barrel and others a 100% increase. The duration of the Strait of Hormuz closure and prospects for diplomatic resolution are unclear. Which specific airlines and routes are most likely to face cancellations next, beyond Norse Atlantic, is unknown. The actual status of jet fuel supply for airlines in the UK and Europe right now is disputed, with Airlines UK stating no disruption but analysts skeptical. How central banks will respond if the energy price shock persists remains uncertain.