UK airlines to be allowed to cancel flights in advance over fuel shortages — BBC News

[0:00] Now let's turn to the Iran war and all of its many consequences. [0:04] The UK government has announced contingency plans [0:07] in case there are jet fuel shortages this summer as a result of this war. [0:11] The International Energy Agency has warned that unless more fuel can be brought in from elsewhere, [0:17] Europe as a whole will face shortages by next month. [0:21] Here's our business correspondent, Mark Ashdown. [0:25] Most airports operate at near full capacity, [0:27] so the smooth running of take-off and landing slots is crucial. [0:31] The current squeeze on jet fuel supplies has led to fears of last-minute cancellations this summer. [0:37] If airlines fail to fly a slot at least 80% of the time, they could lose it to a rival. [0:44] These new rules mean they can temporarily hand a slot back, [0:47] saving fuel and ensuring more flights are fully booked. [0:50] They would have to give two weeks' notice to passengers of any flight changes. [0:54] The government hopes it will reduce the risk of last-minute cancellations. [0:59] I am confident that the majority of people that are travelling this summer [1:03] will have a similar experience to last year. [1:06] There may be a need for airlines to trim their schedules slightly. [1:10] The global flow of jet fuel has adapted dramatically in recent weeks. [1:17] But the UK does import 65% of its jet fuel, [1:20] a significant amount from the Middle East, [1:22] but also from America, and some is refined here. [1:25] The airlines have been clear there's no current shortage, [1:28] but these plans are aimed at allowing them to better plan and minimise disruption. [1:32] What the government's doing here is basically just saying, [1:35] yeah, we're trying to avoid the possibility of last-minute trauma to people's holidays. [1:40] So, really, you might find that you're told, [1:43] if you're flying from Gatwick to Nice in the south of France, [1:47] yeah, we've cancelled your flight, but there's another one an hour earlier, [1:50] so off you go. [1:52] The UK now has just four refineries after two were recently closed. [1:57] They're being asked to maximise production, [1:59] and it's possible airlines will be allowed to use lower-grade jet fuel from the US too. [2:04] Consumer groups say there needs to be more assurances around passenger rights, [2:08] but it's hoped greater flexibility for airlines [2:10] can help ensure a smooth summer of travel. [2:13] Mark Ashdown, BBC News. [2:15] Well, let's pick up on some of those points in Mark's report [2:17] with John Strickland, Director of JLS Consulting, [2:21] an independent air transport consultancy. [2:24] John, we heard that airlines are saying there's no current shortage, [2:29] but how close, give us an estimation, [2:30] how close they are to the wire when it comes to jet fuel [2:34] and how much they hold. [2:36] Well, fuel supplies and deliveries, by normal measures, [2:41] are something which is quite short time frame. [2:44] It's not unusual for airlines not to know six to eight weeks ahead [2:49] where that fuel is coming from. [2:50] It's just assumed the supply will come through. [2:53] There's a big regular dialogue, of course, with the fuel suppliers. [2:57] As your report there said, up until recently, [3:00] more than half that fuel has come from the Middle East region. [3:04] But there's been a lot of adaptation taking place, [3:06] as we also heard there, to source fuel from elsewhere, [3:09] including parts of Africa and particularly the USA. [3:12] But what we've heard today with the plans from the government [3:16] with a short consultation due this week [3:18] is to allow airlines this flexibility on the use of slots, [3:21] which means that if we were to get to that situation [3:25] where there was an actual shortage, [3:26] there will be flexibility for airlines to be more prudent, [3:30] more careful about how they plan their capacity [3:32] and if they see opportunities to do a bit of pruning [3:34] and take flights out to conserve fuel, [3:37] to do it in a way that protects the journeys of passengers [3:41] as planned this summer. [3:43] And I would think in some ways, more importantly, [3:45] into the winter, that's where there would be [3:47] potentially more cancellations than we will see this summer [3:51] because airlines I'm speaking to are expressing calm [3:54] and relative confidence about being able to deliver [3:57] their planned summer flying programme, [3:59] certainly the next two to three months ahead. [4:01] They're not complacent, but optimistic. [4:03] We saw what happened with the US airline, [4:06] Spirit Airlines ceasing operations. [4:08] It was quite a wake-up call within the industry. [4:11] I just wonder, when people are thinking about their travel plans, [4:15] we're coming up to the summer season, [4:17] is it better to wait before booking flights [4:20] or just to go ahead and book as normal [4:22] or go with potentially larger airlines? [4:25] I think it's better to book as planned. [4:29] Normally, the advice would be, and I'd say still is, [4:31] to book early. [4:33] Don't hold back because if capacity is tight [4:36] and normally summer does get booked up, [4:39] but if it had to be any trimming, [4:41] then seats will go rapidly to the highest bidder, basically. [4:45] I've got some holiday flights booked myself in June [4:48] and again in September, [4:49] and I would recommend people, number one, [4:52] keep abreast of what is happening in the wider context of the war. [4:57] Obviously, fingers crossed that that comes to a sooner than a later end. [5:01] And make sure that you're also looking at any communication [5:04] from your airline if there were to be any changes. [5:06] But stressing again, [5:08] airlines are calm about being able to deliver [5:11] what they plan at the moment. [5:12] They will do all they can to operate a schedule [5:15] because not only is some of the time we want to travel, [5:17] it's the time we actually make money, hopefully, from flying. [5:20] So they want to fly the full schedule if they possibly can. [5:24] And they'll look at ways of also juggling around aircraft in their fleet [5:27] if they happen to have aircraft of different sizes [5:30] to make sure that they can get people moved as scheduled. [5:35] OK, well, John, as and when we get there, [5:36] wishing you a good holiday. [5:37] John Strickland there, Director of JLS Consulting. [5:40] Thank you.