European airline leaders have urged the European Union to postpone parts of its climate agenda, warning that rising fuel costs linked to the Middle East conflict could push airfares higher. The bloc, however, has rejected the request, insisting that its environmental targets will remain unchanged.
Speaking on Thursday, Apostolos Tzitzikostas said the EU would continue with its climate plans despite industry concerns. “We have a path that we need to follow. We continue with our targets and the industry needs to invest,” he said.
The appeal from airlines was led by the Airlines for Europe (A4E), which cited the high cost and limited availability of synthetic sustainable aviation fuel (eSAF). Carriers are seeking a delay to mandates requiring its use from 2030.
Kenton Jarvis said the timeline should be reconsidered until supply improves. “We are calling for the eSAF mandate to be postponed until it is actually available,” he told a news conference.
Major airlines including Air France-KLM and Ryanair have long argued that the green fuel requirements place European carriers at a disadvantage compared to competitors in Asia and the Middle East, where such rules are less stringent.
Environmental groups and fuel producers disagree, warning that delaying the transition would undermine long-term energy security. Matteo Mirolo of Arcadia eFuels said scaling back the policy would prioritise short-term financial pressures over long-term sustainability goals.
The debate comes as the aviation sector faces mounting disruption from the ongoing conflict in the Middle East. Airspace closures across parts of the Gulf have forced airlines to reroute or cancel flights, while jet fuel prices have surged. European fuel prices have doubled in recent weeks, with Asian markets also experiencing sharp increases.
Although many European airlines have hedging contracts that temporarily shield them from price spikes, executives warned these protections will expire in the coming months. As a result, carriers are preparing for higher operating costs that could be passed on to passengers.
SAS and Air France-KLM have already indicated that ticket prices will rise, while Finnair has raised concerns about potential fuel shortages due to disruptions in the Strait of Hormuz.
Airlines are also adjusting their route strategies. British Airways is increasing flights to destinations such as the Caribbean that avoid Middle Eastern airspace, while Carsten Spohr said Lufthansa plans to expand services to Southeast Asia, including a new route to Kuala Lumpur.
Michael O’Leary suggested European travellers may increasingly choose closer destinations to reduce costs and avoid longer routes affected by the conflict.
Despite strong travel demand, industry leaders say uncertainty remains high. With fuel costs rising and geopolitical tensions unresolved, airlines face a difficult balancing act between maintaining profitability and keeping fares affordable while also meeting environmental commitments set by regulators.
