The EU plans to inform airlines that the impact of the Iran war on tourism does not require emergency measures to waive passenger compensation for flight cancellations. Draft EU guidelines show that European airlines have managed the crisis well, thanks to hedges that protect them from rising costs, even with jet fuel prices up by almost 84% since the conflict began. Despite warnings of potential supply shortages, data suggests that the tourism sector remains resilient and overall impacts are limited.
High fuel prices do not qualify as extraordinary circumstances that would exempt airlines from compensating passengers for canceled flights, according to the guidelines. Local fuel shortages could be a justification, but currently, no jet fuel shortages have been reported in the EU. The EU imports about 75% of its jet fuel from the Middle East, more than any other fuel type. The EU will also remind airlines they can use Jet A grade fuel instead of Jet A-1 grade to help alleviate supply issues. A spokesperson for the European Commission did not comment on the guidelines, which may still change before their release.
With information from Reuters
