Schiphol cuts fees as airlines face fuel crisis

Schiphol stated that airlines’ costs have risen unexpectedly and sharply as a result of high kerosene prices, according to major media reports. The airport acknowledges a temporary negative impact on its financial results but does not anticipate disruption to planned investments over the next decade, Schiphol said.

The broader aviation industry is grappling with fallout from the US-Israeli war on Iran, which has disrupted global energy supplies. Many European airlines are preparing for a challenging spring and summer period as ticket costs are likely to jump. Numerous carriers have cancelled flights to and from the region, with some postponing resumptions until later this year. United Airlines and Lufthansa are the latest airlines forced to consider raising air fares and scrapping flights following a surge in jet fuel prices driven by the conflict, according to major media reports. United’s CEO announced the airline may need to raise fares by as much as 20 percent, as reported by major media. Lufthansa’s airline group announced the cancellation of 20,000 flights to protect from soaring oil costs, according to major media. Costs have rocketed from approximately $85 to $90 per barrel to an alarming $150 to $200 per barrel in recent weeks. Fuel can constitute up to a quarter of operating expenses for airlines, according to major media.

The European Commission on Wednesday proposed a series of measures to address the impact on the region's energy markets from the US-Israeli war with Iran, according to major media. Research from nine sources indicates that the US-Israeli war on Iran began on February 28. Iran attacked vessels passing through the Strait of Hormuz, reducing traffic in the channel through which about 20% of global oil and gas supplies transit, according to research. Brent crude oil price rose from $72 per barrel on February 27 to $106 per barrel as of Monday (March 9), according to research. LNG prices rose by almost 60% since the start of the war, according to Muyu Xu, senior crude oil analyst at Kpler. QatarEnergy suspended its LNG production on March 2 after an Iranian drone attack, according to research. About 84% of crude oil and 83% of LNG that passed through the Strait of Hormuz in 2024 was bound for Asia, according to the US Energy Information Administration. China, India, Japan, and South Korea accounted for nearly 70% of oil shipments through the Strait of Hormuz, according to the US Energy Information Administration.

If the conflict is short-lived, oil and LNG prices would fall back sharply with Brent crude reaching $65 per barrel by year-end, according to Neil Shearing and team at Capital Economics. In case of a longer war, oil prices would rise to around $130 per barrel in Q2, according to the same analysts. The IEA ordered the largest release of government reserves in its history on Wednesday, with 32 members agreeing to release 400m barrels of emergency crude, according to research. The US agreed to release 172m barrels of crude oil from its strategic petroleum reserve, according to research.

The coordinated attacks on Iranian military, nuclear, and leadership sites included the reported killing of Supreme Leader Ayatollah Khamenei, according to research. A third round of nuclear talks in Geneva had just concluded with the Omani mediator reporting 'significant progress', according to research. US President Donald Trump's direct address to the Iranian people called for them to 'take over your government', Trump said. Israeli Prime Minister Benjamin Netanyahu framed the war as 'removing an existential threat', Netanyahu said. Iran retaliated within four hours of the attacks, hitting Israel, US bases in Bahrain, Kuwait, and Qatar, and civilian infrastructure across the Gulf, according to research. President Trump said the war could last up to four or five weeks, Trump said.

The war has caused serious disruption to the economies of the most directly affected countries, including damage to infrastructure and industries, according to research. The de facto closure of the Strait of Hormuz has produced the largest disruption to the global oil market in its history, according to the International Energy Agency. Iran reversed its decision to reopen the Strait of Hormuz on Saturday, according to research. President Trump insisted on maintaining a US blockade of Iranian ports, according to research. The closure of the Strait of Hormuz led to Brent crude surging past $120 per barrel, according to research. QatarEnergy declared force majeure on all exports after the closure, according to research. Oil production of Kuwait, Iraq, Saudi Arabia, and the UAE collectively dropped by 6.7 million barrels per day by 10 March, and by at least 10 million barrels per day as of 12 March, according to research. 70% of the region's food imports were disrupted by mid-March, forcing retailers to airlift staples, resulting in a 40–120% spike in consumer prices, according to research. Iranian strikes on desalination plants threatened the source of 99% of drinking water in Kuwait and Qatar, according to research.

European countries could run low on jet fuel within weeks, forcing airlines to significantly reduce flights, according to the Head of the International Energy Agency. The global price of jet fuel increased from about $99 per barrel at the end of February to as high as $209 a barrel at the beginning of April, according to research. Air Canada planned to suspend its service to New York's JFK Airport from June 1 until Oct. 25 to lower fuel costs, according to research. Lowest-priced economy tickets cost 24% more on average than a year ago, according to Teneo consultancy. A flight from London to Melbourne in June now costs 76% more than last year, according to research. A flight from Hong Kong to London has gone up by 72%, according to research.

Iran's new supreme leader, Mojtaba Khamenei, called for the Strait of Hormuz to 'remain closed', Khamenei said. Iran's military command said 'Get ready for oil to be $200 a barrel', according to a military command spokesperson. President Trump said he will extend a ceasefire with Iran until peace talks progress, Trump said.

Airlines UK called for delays and cancellations due to fuel shortages to be classified as 'extraordinary circumstances' to avoid compensation, according to major media. The Netherlands is set to increase its aviation tax starting in 2027, with rates jumping up to 40+ euros per ticket, according to research.