Airline bosses warn of major cuts with ‘tough winter’ ahead
Airline bosses warn of major cuts with ‘tough winter’ ahead
Patrick GalbraithSat, October 10, 2026 at 3:00 PM UTC
1
EasyJet has claimed the spiralling cost of jet fuel could wipe out its profit margin, reportedly as low as £6.08 per passenger - Dan Kitwood/Getty ImagesAirline bosses have warned that the industry faces a “crisis” in the coming months because of high fuel prices.
Airline bosses have warned that the industry faces a “crisis” in the coming months because of high fuel prices.
The aviation industry is entering its first winter since the outbreak of war in Iran, which caused the cost of fuel to soar. The price of jet fuel is around $208 (£155) per tonne. A year ago, it was around $90.
Soaring costs have already forced airlines to cut flights and delay payments on leased aircraft.
EasyJet, Europe’s fifth biggest airline, as well as Germany’s Lufthansa, is set to scale back operations over the winter season. It claims its margins are as low as just £6.08 per passenger and a dramatic rise in the price of fuel could mean that flights are no longer viable.
Michael O’Leary, the boss of Ryanair, another low-cost airline, told the Financial Times that the situation was dire: “This is a full-blown crisis. Everybody is going to be hurting next year. We are just trying to trim the ship as much as we possibly can.”
In recent years, Ryanair has sought to make up falling passenger numbers by selling scratch cards and high-margin food and drink on board their flights.
It is understood there are concerns that some airlines could go bust this winter season, which runs in the industry through to March.
Mr O’Leary anticipates airlines will be ‘hurting next year’ as the impact of higher fuel prices sinks in - Henry Nicholls/Getty Images
Last month, AirBaltic filed for Chapter 11 bankruptcy in the United States and Spirit Airlines, an ultra-low-cost airline based in Florida, stopped flying in May.
Advertisement
EasyJet has said it will cut up to 700,000 seats from its winter schedule. The carrier normally offers 50 million seats during the winter season.
Data group Cirium has estimated that the industry as a whole has cut six million seats for the rest of the year.
The reports will come as a blow to Christmas holidaymakers. It is understood that although bookings for easyJet flights have been weak, it is anticipating a last-minute rush.
Mr O’Leary said he expects the fuel crisis to last until 2028.
Kenton Jarvis, the chief executive of easyJet, said that airlines are hedging on fuel, but that even if they buy it six months out, they are paying double industry norms.
John Strickland, an aviation analyst, also told the Financial Times that this winter could be bleak for the industry: “It does look like it’s going to be a tough winter. Even for airlines that are hedged.”
He added: “We’re going to see substantial cancellations and it even puts life in question for some.”
Try full access to The Telegraph free today. Unlock their award-winning website and essential news app, plus useful tools and expert guides for your money, health and holidays.
Source: “AOL Money”
