European air travel faces mounting pressure from fuel costs, weakening demand, and regulatory burdens

Investment analysts including Apollo Investment Group and Morgan Stanley have warned of mounting challenges for European air travel, citing fuel price hikes, falling demand linked to the Iran war, and regulatory pressure. Apollo's chief economist identified Britain, France, Germany, and Australia as most vulnerable to rising jet fuel prices; Morgan Stanley characterized the coming months as "crunch time for EU airports."

Jet fuel prices were up 24% year-on-year in March, according to industry data cited in the analysis.

Airlines have called for reductions in passenger taxes to protect themselves from the worst impacts of rising costs and weaker demand.