Increased Jet Fuel Costs Hit Global Airline Industry

Global airlines are cutting flights due to surging jet-fuel costs, reducing May capacity by 3% as 19 of the top 20 carriers slash routes, per Cirium data. Lufthansa will cancel 20,000 short-haul European flights this summer, deeming them uneconomic amid rising fuel expenses. United Airlines lowered its annual profit forecast, citing fuel price spikes driven by ongoing Middle East conflicts disrupting supply chains. The reductions mark the broadest industry pullback since 2022, with carriers prioritizing cost savings over passenger demand. Analysts warn prolonged fuel volatility could trigger further cuts, risking summer travel disruptions and higher ticket prices.