Airlines still have to pay compensation if flights cancelled due to fuel crisis, EU says

Airlines must compensate passengers for flight cancellations caused by fuel shortages, the EU's transport commissioner has ruled, stating price spikes do not constitute an 'extraordinary circumstance' [1]. Apostolos Tzitzikostas said jet fuel costs or supply issues do not meet the EU criteria that protect carriers from passenger claims, meaning airlines will have to reimburse travelers [1]. While the UK retains this EU law post-Brexit, the government has recently eased penalties for cancellations due to fuel shortages [1]. Ryanair, Europe's largest airline, stated it has no plans to cancel summer flights as it has hedged 80% of its jet fuel at $67 per barrel through March 2027, insulating it from current high spot prices [1]. In contrast, other carriers like Lufthansa and Aer Lingus have already canceled flights [1]. The fuel crisis, triggered by a US-Israeli war on Iran that closed the Strait of Hormuz, has led AirAsia CEO Tony Fernandes to call the situation 'much worse' than the COVID-19 pandemic, noting jet fuel prices have nearly tripled [1]. Despite the turmoil, AirAsia has finalized a $19bn (£13.9bn) deal to purchase 150 Airbus A220-300 jets from 2028 [1].