Europe’s smaller airports ‘under threat’ if fuel shortages cause many cancellations
Europe’s smaller airports may not survive if jet fuel shortages triggered by the Middle East crisis lead to widespread route cancellations, the industry’s trade body has warned.Although airlines insist there are currently no supply problems within the normal four- to six-week horizon, the US-Israel war on Iran and the effective closure of the strait of Hormuz have doubled the price of jet fuel, prompting some carriers to cancel flights.The Airports Council of Europe said regional airports were the most exposed and faced an “existential threat” if airlines cut capacity and raised fares, as demand on their routes was generally more price-sensitive – demonstrated when Lufthansa axed 20,000 summer flights operated by its regional subsidiary, CityLine.Olivier Jankovec, the director general of ACI Europe, said that smaller regional airports had still not recovered since the Covid pandemic, with traffic still 30% below 2019 levels, while larger ones had bounced back to growth.He said: “The current levels of jet fuel prices and the prospect of a new cost of living crisis mean that many regional airports across our continent are likely to face both a supply and demand shock.
For them, this is nothing short of an existential threat.”The body said that troubles risked being exacerbated by the full implementation of the EU’s entry-exit system (EES), which in theory should demand that all applicable non-citizens must now submit biometric information on arrival at the border.It reiterated calls to allow the system to be suspended at any point should long queues develop.The airports’ warning came as the head of the global airlines body Iata, Willie Walsh, said the current crisis was not yet dampening the demand for flying.He added that any jet fuel shortage would affect Asia first, then Europe, and that rationing “could lead to some flight cancellations”.
Airline groups have lobbied for measures including slot alleviation, granted in the UK, which makes it easier to cancel flights without the risk of losing the rights to operate at the same time from a busy airport in future.József Váradi, the chief executive of Wizz Air, the biggest airline in central and eastern Europe, said the slot demands were protecting the interests of legacy carriers such as Lufthansa and British Airways rather than all airlines.Describing the conflict as a “nonsense war” and a “complete mess”, he said he did not expect government involvement in managing fuel supply to be needed or helpful, adding: “Maybe they should stop Donald Trump and send him home, if they want to play a constructive role.”Váradi said he did not expect jet fuel shortages because the high kerosene prices were “creating a lot of room to become creative – that kind of a marketplace mobilises forces”, with tankers now going to the US.He said summer bookings were holding up but European airlines would face a crunch moment in the autumn: “Airlines go bust two times a year, in September and February.
Airlines with weak liquidity positions will come under immense pressure in September time.”
UK faces £35bn hit and risk of recession this year over impact of Iran war, thinktank warns
Britain is facing a £35bn economic hit and the risk of a recession this year as the fallout from the Iran war adds to the pressure on Keir Starmer’s government, a leading thinktank has warned.The National Institute of Economic and Social Research (Niesr) said that even under a best-case scenario the UK economy would grow at a much slower pace this year and next because of the Middle East conflict.With households facing a rise in energy costs linked to the Iran war, the chancellor, Rachel Reeves, has said that “nothing is off the table” as the government considers options to provide a targeted and temporary support package.However, Britain’s oldest independent economic research institute said the government faced a multibillion-pound hole in the public finances amid a worsening inflation shock that would make it harder for Reeves to respond.David Aikman, the Niesr director, said: “This is a serious blow to the government’s mission to get the UK economy growing again
How the UAE’s decision to leave Opec could recast the Middle East
The United Arab Emirates’ decision to walk out of Opec is a political as much as business decision, and will reignite the simmering rows between the UAE and Saudi Arabia – which had been covered up by their shared anger with Iran over its attacks on the Gulf states since the start of the US-Israel war on Tehran.In the short term, leaving the oil producing cartel it joined in 1967 gives the UAE the freedom to respond quickly to a long-term prospect of constrained supplies, and to maximise profit. But it is a decision the UAE has considered before, as UAE and Saudi tensions over production quotas have been longstanding.But the timing and unilateral nature of the UAE decision shows how other intra-Gulf disputes over how to respond to the Iran war could recast the Middle East.The defection is, of course, a blow to Saudi Arabia’s prestige, since it positions the UAE as the Gulf state closest to Donald Trump, a long-term critic of Opec, and weakens the Saudis’ ability to manage the price of oil
‘Stole a charity’: Elon Musk accuses Sam Altman of betrayal in courtroom showdown
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UK must seize initiative on AI or be left at its mercy, Liz Kendall says
Britain must seize the initiative on artificial intelligence or be left at the “mercy and whim” of a future shaped by the technology, Liz Kendall has said.The technology secretary said the country must have greater control over the industry as she highlighted big tech’s grip on its development, with 70% of the world’s AI computing power provided by US companies.In a speech on the UK’s ability to develop its own capabilities, Kendall said: “The choice isn’t between a world that has AI and one that does not. It is a choice between a world where we shape our AI future, based on our own interests and values, or where we are left at its mercy and whim.”Kendall highlighted the launch this month of a state AI investment fund as evidence of Labour’s support for domestic firms, and revealed the government was drawing up a plan to become more influential in designing and manufacturing the chips that power AI systems
West Ham urged to show ‘heart and soul’ over London 2029 World Athletics bid
The head of the London Marathon has urged West Ham to show more “heart and soul” amid fears they could scupper Britain’s chances of hosting the 2029 World Athletics Championships.While London’s bid is seen as the favourite, it has hit a major stumbling block with West Ham refusing to give up their stadium for around two weeks in September 2029 because the football season will be under way.Hugh Brasher, who is part of the London 2029 bid team, admitted that the situation was further complicated by the Hammers facing relegation and the departure of the club’s vice-chair, Karren Brady.“Football is an interesting, very tribal, sport,” said Brasher. “Money talks
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