Europe — Ekhbary News Agency
Air France-KLM Group anticipates a substantial increase in its fuel costs, projecting an additional 2.1 billion euros by 2026. This rise is attributed to escalating jet fuel prices, which the company, citing data reported by the "NRC" newspaper, links to geopolitical tensions, specifically mentioning the "war on Iran" as a contributing factor.
Impact on Profitability and Operations
Bas Brouns, CFO of KLM Royal Dutch Airlines, stated that the full cost of rising fuel prices cannot be passed on to customers, thereby pressuring profit margins. Fuel costs for the second quarter alone are estimated to reach 970 million euros, while the impact of kerosene price hikes was not fully reflected in the first quarter's financial results.
Read Also
- US-Iran Interim Deal in the Works? Diplomatic Source Reveals Details
- Iran: Secret Military Developments Revealed in Intelligence Report
- Hezbollah Sends Demands to Foreign Embassies in Lebanon Regarding Israeli Expansion
- "Return Festival" Concludes 10th Edition in Cairo, Reinforcing Palestinian Identity
- Putin Proposes Transfer of Iranian Uranium to Russia During Xi Talks
Flight Cancellations and Supply Challenges
In April, KLM announced the cancellation of 160 flights to and from Schiphol Airport over the following month, affecting less than 1% of its European routes, including Amsterdam-London and Amsterdam-Düsseldorf. German airline Lufthansa also reduced its flight schedule, cancelling 120 unprofitable short-haul flights daily until October, aiming to save over 40,000 tons of kerosene. Europe imports approximately 43% of its jet fuel from Gulf states, leading to discussions in several airports about imposing refueling limits and prioritizing regular flights amidst supply disruptions.
