economy
May 8, 2026
Jet fuel crisis dwarfs Covid-19 pandemic for global airline industry
The steep rise in jet fuel prices amid the US-Israeli war on Iran is a bigger challenge to airlines globally than the Covid-19 pandemic was, AirAsia CEO Tony Fernandes has said
TL;DR
- Jet fuel prices have tripled due to the US-Israeli war on Iran and the closure of the Strait of Hormuz.
- AirAsia CEO Tony Fernandes states this crisis is worse than the Covid-19 pandemic for airlines.
- Ryanair CEO Michael O’Leary predicts European airlines could fail if prices remain high.
- Airlines have cut 13,000 flights from May schedules globally.
- Lufthansa, Scandinavian Airlines, Turkish Airlines, and Air China are among those canceling flights.
- Spirit Airlines, the seventh-largest passenger carrier in North America, has shut down due to rising fuel costs, resulting in 17,000 job losses.
- A Russian official warns this aviation shock is a harbinger of more severe global economic shocks.