NEWS: Helping Airlines

Aviation Industry Under Pressure

• Main challenges: Airlines face a combination of rising jet fuel prices, increasing insurance premiums, and higher operating costs.

• Fuel supply vulnerability: Disruption in the Strait of Hormuz, which carries ~20% of the world’s oil, has exposed global jet fuel security risks, particularly for Europe (25–30% of jet fuel comes from the Persian Gulf).

  
  

Calls for Government Action

• Association of Asia Pacific Airlines (AAPA):

  • Urges governments to support airlines during this period.

  • Suggested interventions include:

    1. Sharing timely threat information.

    2. Keeping airspace restrictions clear and responsive.

    3. Coordinating repatriation flights.

    4. Alleviating extraordinary operational costs if disruptions persist.

       
       

• IATA’s view: Substituting jet fuel at scale is not feasible, making policy intervention “essential.”

  
  

Policy Measures Already Taken

• The Philippines' Civil Aviation Authority has approved reductions in passenger service and navigation charges at government-operated airports.

  
  

Airline Operational Adjustments

• Cathay Pacific Airways: Extended suspension of all flights to/from the Middle East until the end of April.

• Other airlines:

  • Cutting services entirely.

  • Redirecting flights to Southeast Asian hubs to avoid conflict zones.

    
    

In short, the industry is grappling with supply vulnerabilities and rising costs, prompting calls for government support while airlines adjust routes and operations to cope with the crisis.