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EU Forces Airlines to Refund Passengers Amid Fuel Price Surge

Financial Times Companies •
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EU transport commissioner Apostolos Tzitzikostas told the FT that flight cancellations driven by soaring jet fuel prices are not extraordinary, meaning airlines must still compensate passengers. He dismissed claims of a European fuel shortage, insisting that rising kerosene costs are part of the industry’s business model for today’s market.

Last week airlines slashed about 2mn seats from their May schedules, cutting routes that no longer made financial sense amid doubled fuel costs. The International Energy Agency warned Europe had only six weeks of supply left, while EU energy chief Dan Jørgensen echoed fears of an impending jet‑fuel crunch.

The Commission will issue new guidelines this week clarifying that managing high fuel costs is a normal business risk. Airlines may use Jet A from the US to diversify supplies, but they must retain allocated take‑off and landing slots, lest cancellations erode their operational rights for future operations and market share.

Tzitzikostas warned against alarmist messaging, noting Europe still holds emergency jet‑fuel stocks and can monitor supplies closely. He said the impact on tourism would be limited, with intra‑European travel offsetting Middle East passenger losses. The EU’s stance signals a firm commitment to passenger protection amid volatile fuel prices for the industry.