* European airline CEOs meet in Brussels

* Focus on sustainable jet fuel rules

* War, oil prices buffeting aviation sector

By Joanna Plucinska and Tim Hepher

BRUSSELS, March 19 (Reuters) - European airline chiefs

are meeting in Brussels on Thursday under the cloud of war in

the Middle East and rising oil prices, looking to push back

against the EU's green agenda and what the industry says are

cumbersome rules surrounding sustainable jet fuel.

Citing a lack of available supply and prohibitively high costs,

Europe's airlines are expected to call for regulators to roll

back mandates for the use of synthetic sustainable jet fuel

(eSAF) starting in 2030, Reuters reported this week.

The lobbying comes after Air France-KLM, Ryanair

, Lufthansa, easyJet and British

Airways-owner IAG have for years lamented what they see

as an unequal burden on Europe's airlines, allowing Asian and

Middle Eastern carriers a cost advantage.

The green jet fuel industry and environmental groups insist

the shift is necessary to reduce the sector's reliance on oil.

MIDDLE EAST WAR RIPPLES THROUGH SECTOR

While sustainability is in focus, the Iran war and oil prices

above $100 a barrel will likely be front and centre.

The Middle East conflict, now well into its third ​week, has

thrown aviation into turmoil, with flights cancelled or rerouted

thousands of miles and most airspace over the Gulf still closed

amid fears of missile and ​drone attacks.

Jet fuel prices have spiked, pushing up operating costs,

with European prices doubling and Asian prices up almost 80%

since U.S. and Israeli strikes on Iran began in late February.

Air France-KLM and SAS have already said they will have to

hike ticket prices due to the rising cost of jet fuel, while

Finnair has warned of the risk of jet fuel supplies running out

due to the effective closure of the Strait of Hormuz, a major

oil transit route.

Christian Meisner, head of human resources at jet engine

maker GE Aerospace, told Reuters the industry is forging

ahead with investments in fuel-saving technology despite the

uncertainty.

"As serious as things are in the world.... we do not see

airlines stopping deliveries of new airplanes," he said. "What

(the crisis) might do is put a more acute focus on efficiency,

meaning fuel burn," he said in an interview.

WINNERS AND LOSERS?

U.S. airlines such as Delta this week warned of higher

ticket prices tied to fuel costs since many American carriers

have not hedged their fuel costs. Spring travel demand, however,

remains strong.

Europe's leading airlines have largely hedged their jet fuel

costs and will be shielded, at least for the next few months,

from the price shock triggered by the war.

IATA projected in December that European airlines are set to

be the most profitable around the world, surpassing North

American airlines this year.

Analysts say European tourists are likely to travel closer

to home to cut flight times and avoid flying long-haul over the

Middle East. But the jury is out on whether the Gulf conflict

will result in a post-war shift towards European carriers over

the longer term, given the historic market power of Gulf hubs.

Ryanair's CEO Michael O'Leary has said the budget carrier is

expecting more bookings to travel within Europe, while British

Airways is adding more flights to destinations like the

Caribbean that avoid flying over Middle Eastern airspace.

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