The UK aviation industry is facing unprecedented turmoil as the ongoing conflict in Iran continues to disrupt jet fuel supplies, causing prices to skyrocket and leading to the collapse of another British airline. Prime Minister Sir Keir Starmer has warned that Britons may need to reconsider their summer holiday plans due to the crisis.
Ascend Airways Enters Administration
Ascend Airways, a wet-lease carrier that operated flights from major UK hubs including Gatwick and Stansted airports, has cancelled all flights with immediate effect, resulting in 161 job losses. The airline, which provided aircraft for Tui Airways, Oman Air, and Air Sierra Leone, has filed for administration and surrendered its UK air operator's certificate (AOC). Its fleet of six Boeing 737 MAX 8 aircraft has been returned to lessors.
The airline's collapse follows that of Ecojet, a Scottish carrier founded by controversial entrepreneur Dale Vince in 2023, which entered liquidation without ever operating a single flight. Ecojet had aimed to become the world's first electric airline but failed to raise the necessary £20 million.
Global Impact of Jet Fuel Crisis
The crisis is not limited to the UK. German airline Lufthansa has cancelled 20,000 summer flights across Europe, citing doubled jet fuel costs since the outbreak of the Iran conflict. KLM has also announced 160 flight cancellations in the next month, including routes to the UK. Other airlines such as Air Canada, Delta Airlines, and Asiana Airlines are reducing flights to the UK.
The jet fuel price surged from $99 per barrel in late February to $209 in early April, before falling to $179 per barrel. This has forced airlines to hike fares and reduce services, with smaller carriers particularly vulnerable.
Expert Warnings
Chris Harrington, managing director of travel expert hoppa, warned that the spike in fuel costs can be catastrophic for airlines operating on thin margins. He predicted that more airlines could fall into liquidation if the crisis continues. Christian Petzold, travel and tourism expert at TheTeamTrip, added that UK airlines face a heavier regulatory and tax burden compared to European competitors, making them less able to absorb external shocks.
Despite official reassurances from the UK government that airlines are not currently experiencing a jet fuel shortage and that passengers need not change their plans, the recent closures indicate significant strain on the sector.
Broader Implications
The collapse of Ascend Airways and Ecojet highlights the fragility of the UK aviation industry amid the ongoing Middle East conflict. Experts warn that unless the war and fuel crisis end soon, further airline failures are likely. The Daily Mail has contacted Ascend Airways for comment.
Globally, airlines are responding with fare hikes, capacity cuts, and fuel surcharges. For example, Air France-KLM plans to increase long-haul ticket prices by €50 per round trip, while United Airlines is cutting unprofitable flights and raising checked bag fees. The situation remains fluid, with many carriers adjusting their operations in real time.
