Europe Under Pressure from the Hormuz Crisis: Global Airlines Cancel May Flights as Energy Costs Surge Daily
War on Iran and Strait Blockade Deal Heavy Blow to European Economy; Warnings of Major Airline Bankruptcies
NYN | Reports and Analyses
The Associated Press has revealed rapidly escalating economic repercussions hitting Europe amid ongoing tensions related to the war on Iran and the blockade of the Strait of Hormuz. These developments have cast a heavy shadow over vital sectors, particularly energy and aviation.
Daily Losses in the Hundreds of Millions
According to European Union Energy Commissioner Dan Jørgensen, the current crisis is costing Europe approximately €500 million per day (around $600 million), due to supply disruptions and soaring energy prices. This situation threatens market stability and increases pressure on European economies.
European officials have warned that the continuation of the crisis resulting from the war and the Strait of Hormuz blockade could lead to more severe consequences, including the potential bankruptcy of major airlines, as operating costs rise and travel demand declines.
Paralysis in the Global Aviation Sector
In the same context, Cirium, a company specializing in aviation analytics, announced that around 20 of the world’s largest airlines have canceled their scheduled flights for the upcoming month of May, which previously covered most major global destinations.
The affected airlines include Lufthansa, Delta Air Lines, United Airlines, American Airlines, Air Canada, Emirates, Qatar Airways, as well as major Asian and European carriers such as British Airways and Air France–KLM.
Wider Repercussions on the Global Economy
These developments reflect the accelerating impact of the geopolitical crisis in the Gulf region. The consequences are not limited to energy markets but extend to global supply chains, trade flows, and air transport.
Observers believe that continued escalation in the region, particularly in vital maritime corridors, could trigger prolonged economic disruptions, with rising shipping and insurance costs and declining confidence in international markets.
