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member states, fuel suppliers and the aviation sector on sourcing alternative jet fuel supply.” The EC also relaxed


airport slot rules, announced an “optimisation of refinery production” and pledged to make more sustainable aviation fuel (SAF) available. Yet it warned: “Jet fuel


shortages may have a significant impact, especially in view of the busy summer aviation season.” European airports association


ACI Europe, which has led industry calls for action to mitigate potential jet fuel shortages, welcomed the measures, saying they “largely reflect the key asks” of the sector. However, Ryanair chief


Michael O’Leary appeared not to have received the ‘keep calm and carry on’ message. Speaking in Italy, he noted


Ryanair has fuel supplies guaranteed only to the end of May and said: “If the war ends at the end of April or beginning of May, there will be no problems during the summer. But if it continues, we don’t know.” EU energy commissioner


Dan Jorgensen also strayed from the ‘no need for panic’ line, warning it is “very likely many people’s holidays will be affected, either by flight cancellations or very expensive tickets”. Lufthansa cut 20,000 flights


from its summer schedule, while British Airways owner IAG warned of higher fares. BA’s US partner American


Airlines went further, putting a $4 billion figure on the increased cost of fuel it would buy this year at unhedged market prices – an amount it made clear it would “make sure” to recoup from passengers.


Tui cuts profit forecast with bookings down 7%


Ian Taylor


Tui issued a profits warning in a trading update last week, with group-wide bookings down 7% on a year ago – a deterioration from 2% down in early February. The group now expects to make


an underlying full-year profit of €1.1 billion to €1.4 billion, compared with its previous forecast of a 7%-10% increase on last year’s €1.4 billion. It also reported it was suspending


its revenue forecast “until conditions stabilise”, having previously predicted a rise of 2%-4% in full-year revenue on the €24 billion it recorded last year. Tui reported customer


repatriation and operational disruption in the first month of the war on Iran cost it €40 million and warned: “The ongoing conflict and uncertainty surrounding its duration continue to limit near-term visibility and drive consumer caution.” The group noted it repatriated


American and United report higher fuel costs


American Airlines reported a $400 million hit from rising fuel costs in its first-quarter results to March and warned its fuel bill for the year would go up by $4 billion. Chief financial officer Devon


May told analysts American would “make sure we’re passing on as much of that fuel increase to customers as possible”.


46 30 APRIL 2026 Sebastian Ebel


about 10,000 customers in March, including 5,000 passengers on cruise ships Mein Schiff 4 and Mein Schiff 5 and 5,000 from other European markets as well as 1,500 crew. The two cruise ships were trapped


in the ports of Abu Dhabi and Doha until April 19 when they were among six cruise vessels to escape the Persian Gulf. Tui said the vessels will commence itineraries from mid-May. It reported “a partial shift in


demand from eastern to western Mediterranean destinations, with customers demonstrating increased


caution and booking closer to departure dates” in its tour operator (markets and airline) and hotels and resorts divisions. The impacts left ‘booked revenue’


for summer 2026 down 7% on the same time last year, with Tui hotel occupancy also 7% down “driven by the impact of the Iran war particularly in Turkey, Cyprus and Egypt”. Tui insisted it “remains well


positioned despite the volatile geopolitical backdrop” but noted its adjusted guidance “assumes no material escalation in geopolitical tensions and that fuel supplies can be maintained”. In February, Tui hailed the first


quarter of its financial year as the “best in its history” despite tour operator booked revenue down 1% year on year for the winter and 2% down for the summer, noting both “higher average prices” and “a trend toward later bookings”. The group is due to report half-year results on May 13.


Rival United Airlines recorded


an increase of $340 million in its fuel bill for the same quarter and announced plans to cut about 5% of capacity for the rest of the year. American chief executive Robert


Isom insisted “we’ll be sharp with capacity as we move beyond the summer peak”, adding: “We expect higher yields as we pass through more of the higher fuel expense.” Both airlines reported record


first-quarter revenue, although United reported a $900 million profit while American recorded a $382 million loss. Isom dismissed talk of a merger


American Airlines


with United – a possibility raised by United chief executive Scott Kirby earlier in April – saying: “The idea of the two largest airlines in the world getting together we view as being anti-competitive, bad for customers, bad for the industry.”


travelweekly.co.uk


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