Brussels, Belgium. The European Union is set to tell airlines that the impact from the Iran war on tourism is not yet severe enough to warrant emergency measures such as waiving carriers’ obligations to pay compensation for cancelled flights, draft guidelines seen by Reuters showed.
Draft guidelines on tourism impact
“The current situation does not point to the need for dedicated measures for the tourism sector, unlike during the COVID-19 crisis,” the draft guidelines for the industry and passengers said.
“At this stage, available data indicate that overall impacts on tourism remain limited, with demand remaining broadly resilient,” it added.
Airline costs and fuel supply
European airlines have largely ridden out the crisis so far, with hedges cushioning costs even as jet fuel prices have risen nearly 84% since the U.S.-Israeli war with Iran began on February 28. Carriers have warned, however, that supply shortages could emerge within weeks.
No jet fuel shortages have been reported in the European Union. Europe relies on imports for about 75% of its jet fuel, mainly from the Middle East, more than for any other transport fuel.
Commission response and publication timeline
A European Commission spokesperson declined to comment on the document, which could still change before publication on Friday.
How do you think airlines should balance passenger compensation rules with disruptions linked to geopolitical conflicts?
