EU Transport Commissioner Apostolos Tzitzikostas has taken a clear stance in the dispute over mass flight cancellations, urging airlines to respect passenger rights. In a statement to the Financial Times, the Commissioner clarified that rising fuel costs do not constitute an "extraordinary circumstance" within the meaning of EU Regulation 261/2004 on air passenger rights.
The authority thus contradicts the arguments of numerous airlines that have cut around two million seats from their flight schedules worldwide in recent weeks due to the volatile market situation resulting from the Middle East crisis. According to Tzitzikostas, these cuts are primarily based on the companies' economic considerations, as unprofitable routes are no longer financially viable with doubled fuel prices.
While industry giants like AirAsia CEO Tony Fernandes consider the current situation more serious than the coronavirus pandemic, the EU transport department rejects claims of an acute physical shortage of kerosene in Europe. Tzitzikostas emphasized that Europe has sufficient emergency reserves and that security of supply is guaranteed for an extended period. This assessment, however, contrasts with warnings from the International Energy Agency (IEA). Its director, Fatih Birol, had previously indicated that European stocks might only last for about six more weeks in some areas. EU Energy Commissioner Dan Jørgensen also expressed concern about a looming supply crisis, suggesting a lack of consensus within the Commission.
Despite regulatory pressure and the tight supply situation, some market participants are investing counter-cyclically in expanding their fleets. AirAsia recently announced an order for 150 Airbus A220-300s, a contract worth approximately US$19 billion. This underscores that major players expect long-term growth in the air transport market, despite the current tripling of fuel prices. For passengers, however, the current legal interpretation by the Transport Commissioner means that they are entitled to compensation payments of between €250 and €600 in the event of short-notice cancellations, provided the airline justifies the cancellation solely on the grounds of high operating costs.
To prevent an escalation of the situation, mechanisms for the close monitoring of kerosene stocks have already been established at the EU level. These are intended to enable orderly coordination and, if necessary, the release of reserves between member states. Meanwhile, the aviation industry is calling for tax relief to mitigate the massive cost pressures resulting from geopolitical tensions in the Middle East. Experts anticipate that legal disputes between passenger portals and airlines will intensify in the coming months, as the airlines are likely to attempt to portray the price increases as an unavoidable external crisis.