Jet fuel worries spark calls for tax cuts

Airlines are urging the UK government to ease environmental restrictions, reduce aviation taxes, and introduce regulatory flexibility as concerns grow about rising costs and potential jet fuel shortages linked to the ongoing conflict in the Middle East.

According to a policy briefing prepared by the industry body Airlines UK on behalf of major carriers such as British Airways, easyJet, Ryanair, Virgin, TUI and Jet2, companies are asking ministers and aviation regulators to temporarily suspend the emissions trading scheme and loosen rules governing night flights. The proposals aim to help airlines cope with higher fuel prices and possible supply disruptions.

The document also suggests revising passenger compensation rules so that disruptions caused by fuel shortages would be classified as “extraordinary circumstances.” This would mean passengers affected by delays or cancellations might only receive refunds rather than additional financial compensation.

Airlines warn that continued instability in jet fuel supplies could force them to reduce flight schedules and increase ticket prices. The briefing reiterates long-standing industry demands to remove air passenger duty and relax “use it or lose it” airport slot rules, which currently require airlines to operate scheduled flights in order to keep valuable takeoff and landing rights.

While both the aviation industry and the UK government state that there is currently no shortage of jet fuel, some experts believe supplies could come under pressure if tensions escalate in the Middle East, particularly if shipping routes such as the Strait of Hormuz are disrupted. The head of the International Energy Agency recently cautioned that Europe may have only a limited supply of jet fuel if regional oil flows are not restored.

Among other measures proposed, airlines suggest allowing the import of Jet A fuel from the United States despite differences in technical standards, and encouraging UK refineries to prioritise jet fuel production over petrol or diesel to ensure aviation supply remains stable.

One of the most controversial proposals involves temporarily relaxing night flight restrictions to help airlines maintain schedules if disruptions worsen. The industry also proposes pausing emissions-related costs and reducing air passenger duty in order to ease financial pressure during the crisis.

Airlines UK said carriers are currently operating normally and maintaining close communication with the Department for Transport. The organisation emphasised that flexible regulatory measures could help airlines minimise disruption to travellers and maintain international connectivity.

Meanwhile, the global aviation association IATA warned that flight cancellations in Europe could occur within weeks if jet fuel shortages materialise, echoing disruptions already seen in parts of Asia. Director General Willie Walsh stressed the importance of governments preparing coordinated plans in case fuel rationing becomes necessary, including potential adjustments to airport slot rules.