EU under pressure from airlines due to high fuel prices

European airlines are using the fuel price crisis to pressure the United Kingdom and Brussels to withdraw a series of regulations they oppose, including plans to allow passengers two free pieces of hand luggage on every flight. Lobby groups are urging politicians to abandon a range of measures the industry has been fighting against for years, including upcoming baggage rules, environmental charges, and changes to the passenger compensation system, reports the Financial Times.

They argue that such demands already put EU and UK carriers at a disadvantage and that they should be lifted to better cope with the doubling of airline fuel prices in recent weeks.

– I did not start the war in Iran. So why should I bear the consequences? Governments should abolish rules that force airlines to pay compensation if they cannot fly due to fuel shortages, and that many rules imposed on the industry are politically motivated – said József Váradi, CEO of Wizz Air.

EasyJet has already announced a larger loss than expected in the spring months, while German Lufthansa canceled 20,000 flights, stating that they would be unprofitable due to higher fuel costs. Virgin Atlantic also recently told the Financial Times that it would struggle to make a profit this year.

– We consistently seek a level playing field. The crisis has deepened. These are some of the measures that can be taken, even temporarily, to provide relief – said a senior airline executive.

Among the most noticeable changes, the European Parliament is considering whether to allow passengers to carry a second, larger piece of hand luggage for free along with a smaller personal item. While some airlines, such as British Airways, already allow this, low-cost carriers argue that it would force them to raise ticket prices and create problems for their business model, which relies on quick aircraft turnaround upon landing.

– We compete globally. If the US and Canada were to introduce similar rules on fees and baggage, I would be satisfied, but until then, we do not need such rules here – said the same executive.

The industry also wants changes to the ‘tanking’ rules, which prevent airlines from refueling with cheaper fuel before entering a specific region.

– A temporary suspension of the obligation against tanking, and as soon as possible, would help bring more clarity as airlines deal with new challenging circumstances – More than 50 days have passed since the start of this conflict, and it will take weeks for supply to return to normal — we need temporary adjustments to EU rules to overcome this challenge – wrote Ourania Georgoutsakou, head of the Airlines for Europe association, on LinkedIn last week.

EU announces flexibility, but without drastic measures

Airlines are also lobbying for changes that would reduce passenger compensation costs for canceled flights, according to sources familiar with the discussions. Changes to slot rules at airports, which require airlines to use them or risk losing them even when demand is low, are also on the industry’s list of demands.

The UK government has already announced that it will allow airlines to request exemptions from the ‘use it or lose it’ rule if fuel shortages prevent flights from being operated. They added that this means airlines can focus on reducing disruptions for passengers, rather than feeling pressured to operate flights just to keep their slots.

In Brussels, policymakers are reluctantly changing the legislation that regulates the industry, but countries like Portugal have expressed concern about the impact of high fuel prices on tourism.

For now, European officials have indicated that they are willing to partially ease regulations on the industry, which supports over five million jobs in the region, but only temporarily.

– We will allow flexibility regarding airport slots, refueling rules, public service obligations, and passenger rights – said Transport and Tourism Commissioner Apostolos Tzitzikostas last week, promising ‘temporary legislative changes’ if the situation worsens.

Tzitzikostas, however, stated that he would not call on people to travel less due to the crisis. He emphasized that there is no need at this time to intervene in how people live, work, or travel.