The European Parliament's Committee on Transport and Tourism (TRAN) on 15 July 2026 debated the competitiveness of EU aviation against the backdrop of the Middle East crisis and fuel price spikes, with experts warning of structural vulnerabilities from declining European refining capacity and heavy reliance on Middle East imports for jet fuel. Professor David Chiaramonti of the Polytechnic of Turin told MEPs that sustainable aviation fuel (SAF) prices remain 3-10 times higher than fossil kerosene, calling for stable, long-term policies and international alignment via ICAO. Professor Aisling Reynolds-Feighan of University College Dublin noted that while European airlines hedge 70-80% of fuel, they face squeezed revenues as passenger demand softens and costs rise due to the EU Emissions Trading System (ETS) and SAF mandates.
She highlighted that a European Commission communication on 8 May 2026 clarified that fuel surcharges are not permitted and that cancellations due to high fuel prices do not qualify as extraordinary circumstances. MEPs from the centre-right European People's Party (EPP) and the centre-left Socialists and Democrats (S&D) pushed back on the complexity of overlapping regulations, including the Renewable Energy Directive (RED), ReFuelEU Aviation, and the ETS, arguing that the regulatory burden undermines competitiveness. In contrast, Greens-EFA members questioned the pace of SAF deployment, urging faster adoption to meet climate targets. No formal decisions were taken; the debate served as an oral presentation to inform future policy.
The discussion highlighted trade-offs between environmental ambition and economic viability: stricter SAF mandates and ETS costs could accelerate decarbonisation but raise operating expenses for airlines, potentially leading to higher fares or reduced connectivity for passengers, while fuel producers face uncertainty over investment signals amid regulatory complexity. Airports also stand to be affected by shifts in airline networks and passenger demand.