Aviation in Turmoil: Global Fuel Crisis Triggers Thousands of Flight Cancellations

The closure of the Strait of Hormuz due to the conflict between the US, Israel, and Iran has triggered a severe fuel crisis in the aviation industry. Several global airlines have announced significant flight cancellations. Lufthansa has taken the most drastic measures, cutting 20,000 short-haul flights through October 2026. These cancellations will heavily impact hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome. Similarly, KLM has adjusted 160 flights, and Aer Lingus has cancelled approximately 500.

Ryanair has not yet implemented mass cancellations and continues to operate normally; however, CEO Michael O'Leary warned that a prolonged conflict in Iran could force the airline to cancel summer flights and increase ticket prices.

In response to the wave of flight disruptions, the Spanish consumer protection organisation OCU has reminded passengers that a fuel crisis does not absolve airlines of their legal obligations. Passengers whose flights are cancelled are entitled to a full refund or alternative transportation to their destination under comparable conditions. Additionally, airlines must provide free meals, drinks, two phone calls or messages, and hotel accommodation if necessary.

Furthermore, passengers may be entitled to additional monetary compensation. Under EU Regulation 261/2004, the amount depends on the flight distance: €250 for routes up to 1,500 km, €400 for 1,500 to 3,500 km, and €600 for flights exceeding 3,500 km. If an alternative flight results in only a minor delay, this compensation may be halved. Payments must be made via cash, bank transfer, check, or—only with the passenger's consent—travel vouchers.

Compensation is not required if the passenger was notified at least two weeks in advance, if an alternative flight with minimal schedule changes was offered, or if the airline can prove that the cancellation was caused by "extraordinary circumstances" that could not have been avoided.

The OCU emphasises this last point: the organisation argues that rising fuel prices do not constitute an extraordinary circumstance, as the situation has been known for nearly two months. EU Regulation 261/2004 applies to all flights departing from EU airports and to flights by EU airlines arriving in the Union.