The Last Word with Matt Cooper What Does The Iran War Mean For Air Travel?
Apr 1, 2026
Shona Murray, Europe correspondent at Euronews, outlines EU energy policy tensions and geopolitical fallout. Paul Hackett, travel industry leader, describes booking shifts, route cuts and fuel supply impacts. Michael O'Leary, Ryanair CEO, warns of jet fuel hedging risks and possible supply disruptions. They discuss flight scarcity, long-haul route changes and EU moves toward renewables and subsidies.
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Airlines Hedging Masks Immediate Price Pain
- Jet fuel price volatility is partly hedged but unhedged exposure is costly for airlines.
- Michael O'Leary said Ryanair is 80% hedged to March 2027 but the remaining 20% is costing about $150 a barrel now.
Fuel Supply Risk Could Force Route Cuts
- Supply risk, not just price, threatens European flight schedules if the Iran war continues.
- O'Leary warned of possible 10–25% supply disruption to fuel in May–June if hostilities persist and Hormuz remains closed.
Expect Airlines To Trim Underbooked Flights First
- Airlines will prioritise fully booked routes and cut or reduce frequency on lightly booked services if fuel supply tightens.
- Paul Hackett said carriers will protect 100% sold flights and reduce frequency on underbooked routes.