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European airlines urge EU to delay green-fuel rules as oil prices bite
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European airlines urge EU to delay green-fuel rules as oil prices bite
Mar 19, 2026 3:53 AM

* European airline CEOs meet in Brussels

* Airline chiefs urge rollback of synthetic jet fuel

mandate

* War, oil prices buffeting aviation sector

(Updates with CEO comments throughout)

By Joanna Plucinska and Tim Hepher

BRUSSELS, March 19 (Reuters) - European airline chiefs

called for the postponement of "broken" parts of the EU's green

agenda on Thursday, warning of higher fares in the event of

prolonged conflict in the Middle East.

Citing a lack of available supply and prohibitively high

costs, the industry's A4E lobbying group urged regulators to

roll back mandates for the use of synthetic sustainable jet fuel

(eSAF) starting in 2030, confirming a Reuters report.

"We are calling for the eSAF mandate to be postponed until

eSAF is actually available," easyJet CEO Kenton Jarvis

told a news conference.

Air France-KLM, Ryanair and other major

carriers have for years lamented the green fuel mandate as

imposing 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.

"It would endanger our future energy security just for the

sake of short-term quarterly results," said Matteo Mirolo,

special advisor to the CEO, Arcadia eFuels.

MIDDLE EAST WAR RIPPLES THROUGH SECTOR

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.

While most European airlines are cushioned by fuel hedging

contracts, those are set to run out in the coming months, with

CEOs warning at the annual summit in Brussels that Europe won't

be immune to higher ticket prices tied to more expensive oil.

Jarvis said consumers should book their flights early to

avoid a rise in prices.

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 that jet fuel supplies may run out due to the

effective closure of the Strait of Hormuz.

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.

Ryanair CEO Michael O'Leary said European tourists are

likely to travel closer to home to cut flight times and avoid

flying long-haul over the Middle East.

CEOs said it was too early to tell how the aviation

ecosystem will be reshaped by the war in the longer term.

British Airways is adding more flights to destinations like

the Caribbean that avoid flying over Middle Eastern airspace,

while Lufthansa CEO Carsten Spohr told reporters the carrier is

set to launch a new route to Malaysian capital Kuala Lumpur as

it expands flights to Southeast Asia.

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