European regulators have published guidance for the use of both Jet A-1 and Jet A fuel to alleviate potential supply shortages amid the Middle East crisis and to avoid confusion between the two fuel grades. "Aviation and fuel supply stakeholders are reviewing the feasibility of introducing [Jet A] at locations traditionally supplied with Jet A-1," the European Union Aviation Safety Agency says in a safety information bulletin. It notes that Jet A-1 is "predominantly used" in Europe and "many other parts of the world", citing Africa, Australia, India and southeast Asia as examples. EASA observes that "Jet A is used daily for flights from and within the USA and Canada". Adopting Jet A in other locations "would not generate safety concerns provided that its introduction is properly managed", the agency says. But it warns: "The transition to Jet A in a Jet A-1 environment, when not properly managed, creates risk of fuel grade confusion, particularly in the communication between fuel suppliers, flight crews, and airlines. This may lead to a mismatch between the actual fuel properties and the assumptions used for flight planning, fuel temperature monitoring, and crew procedures." EASA highlights a higher maximum freezing point and lower electrical conductivity of Jet A compared to Jet A-1. If an aircraft was fuelled with Jet A but its pilots assumed that Jet A-1 was delivered – for example through incorrect electronic transmission of a fuel ticket – it could result in the aircraft "flying outside of its safe operating limits", EASA warns, adding: "These risks may be further exacerbated by inconsistent fuel grade availability across airports, increasing the likelihood of mixing fuel grade and associated assumption mismatches." In addition to aircraft and aerodrome operators, the bulletin is directed at fuel producers and suppliers, organisations involved in storing and dispensing of aviation fuel at aerodromes, authorities, and design approval holders. The regulator stresses that the bulletin is "addressing a transitory situation" and providing guidance. "It shall not be interpreted as an authorisation or endorsement, nor shall it be construed to promote the transition towards turbine jet fuel of Jet A grade in Europe," it asserts.

Even the most profitable airlines are being compelled by high fuel prices to shrink their operations, Azul's chief executive John Rodgerson has observed. "The best-run airlines in the world have cut capacity," Rodgerson said on 7 May during an earnings call. "That's a fact, across the board." The Brazilian carrier's chief revenue officer Abhi Shah adds: "You have guys like United [Air Lines] talking about cutting capacity, and other airlines [doing the same thing]. Even Delta [Air Lines] cut like 3% in June, or something like that." Flights that airlines say are "unprofitable" – meaning not enough customers are willing to pay the suddenly skyrocketing fares for those flights – are being cut from schedules. Additionally, a reduction in overall capacity creates a scarcity of product that aids airlines in raising fares as they attempt to make consumers shoulder the brunt of high jet-fuel costs. United's first-quarter profit came in at $997 million, up from $607 million in the same period last year. The US major notes that it expects capacity growth for the rest of 2026 to be 5 percentage points lower than originally planned. It now foresees that third- and fourth-quarter capacity growth will range between flat and up 2% year on year. Delta reported a first-quarter operating profit of $501 million, down from a $569 million profit made in 2025's first quarter. After having raised first-quarter capacity by 3% year on year, the Atlanta-based carrier intends to keep second-quarter capacity flat with last year's period. Azul exited Chapter 11 on 20 February after filing for bankruptcy protection in the USA on 28 May 2025. Shah notes that as part of Azul's restructuring, it had planned for a "very conservative growth profile" before the Iran war started in late February. Azul had intended to raise capacity for full-year 2026 by 1% year on year. It ended up reducing first-quarter capacity by 2.7% year on year. "In addition to that, we've already made capacity adjustments for May and June," Shah says. "We've taken about 5% capacity out for May and June, and we will strategically roll that forward as needed. So that plus 1[% year-on-year capacity growth] that was the public plan on exit most likely is now going to be negative for the whole year." Rodgerson argues that Azul's recent restructuring enables it to cut capacity quickly. "Our [aircraft] ownership cost is down by 30% permanently, and we have a much more flexible fleet plan going forward [that] allows us to react," he says. He also notes that Azul's lease liabilities are down 42% year on year. Of the carrier's 198 in-service or stored aircraft, 185 are under operating lease, Cirium fleets data shows. "Unfortunately, airlines buy aircraft well in advance, and they're [being delivered during] a Middle Eastern crisis," Rodgerson says. "It's a bit harder to take capacity out when you're taking new metal with high ownership cost." Shah adds: "We don't have to do anything stupid. We don't have to take airplanes that we don't want." Azul's restructuring also drove down first-quarter expenses, helping the carrier make an operating profit of R1 billion ($203 million), up 83% year on year. The carrier says that first-quarter unit cost (CASK) was down 5.7%, "primarily driven by the structural cost initiatives implemented during our restructuring process". It adds: "Throughout the restructuring, we executed a comprehensive renegotiation of contracts with suppliers, optimised operating expenses, and implemented efficiency measures across the organisation." Total operating expenses in the first quarter came in at R4.43 billion, down 8.2%. Revenue grew 1.4%, to R5.47 billion. Azul ended the first quarter with liquidity of R4.7 billion. In February, it raised $750 million through its equity rights offering and $1.38 billion via its exit financing, and paid down its debtor-in-possession financing. Its gross debt at the end of the first quarter stood at R20.6 billion.

Shareholders of Allegiant Air and Sun Country are expected to vote on 8 May on the merger of the two carriers, which was announced in January and won US regulatory approval in April. "Assuming a favourable vote at each entity, the transaction should close around May 13," said Rob Neal, Allegiant's chief financial officer, during the first-quarter earnings call of parent Allegiant Travel held 30 April. The Las Vegas-based carrier is already in a "very strong financial position", which will only grow stronger as it joins forces with Sun Country, chief executive Greg Anderson adds on the call. Allegiant ended the first quarter with $1.2 billion of liquidity. In the current volatile fuel-price environment, the combination with Sun Country will be a boon, not a burden, the executives add. Sun Country's charter and cargo businesses have "contractual fuel pass-through structures" and both airlines "own their aircraft" and have complementary fleet strategies. "In a market where managing capacity is crucial, owners have greater flexibility than those who lease," Anderson says. "We look forward to completing the merger and demonstrating the value of the combined companies in the coming quarters." Once the deal closes, the combined entity will own 163 of the 172 aircraft in its passenger fleet, Neal says. Amid the current operating environment, Allegiant is still seeing strong leisure demand, as shown by its "robust cash sales", Anderson says. He adds: "We had many record sales days in the quarter and continue our double-digit growth over [the] prior year." Jet-fuel costs, which Anderson describes as "the main pressure point", have "risen sharply", with crack spreads nearly tripling to about $1.70 per gallon in early April but have since dropped to $1.20, he says, noting this is "still about twice as much as the pre-conflict level of roughly $0.60". While fares remain healthy overall, Allegiant is reducing off-peak capacity "where margin pressure is most acute" and reducing service on some of its longer stage-length routes "where the hurdle on fuel cost is higher". "We are not seeing any reasons to pull back on our peak flying," Anderson says. Allegiant is looking forward to taking delivery of its Max orderbook, since that aircraft, Anderson says, offers "more than a 20% improvement in fuel-burn efficiency". Allegiant ended the quarter with 123 aircraft in operation, taking delivery of one 737 Max and retiring one A320 during the period. Cirium fleets data shows Allegiant Air has orders for 33 aircraft, including 10 Max 8s and 23 Max 7s. Boeing's Max 7 is awaiting certification from the US Federal Aviation Administration. "As we move to the second quarter, we expect to take delivery of three 737 Max and to retire one A320," says Neal. Neal adds: "Fleet flexibility underpinned by aircraft ownership continues to be a key competitive advantage for Allegiant, notably in a high fuel environment because we retain the optionality to accelerate retirements of older aircraft if elevated fuel prices persist." Anderson says Allegiant continues to "closely monitor the evolving geopolitical environment and will adjust our operations as conditions warrant". He adds: "While we have already taken some modest schedule actions, our flexible model and agility still give us ample time to refine these decisions as the year unfolds. "The sharp rise in fuel prices will weigh on near-term industry profits. We are not immune… That said, a silver lining is that the gap between efficient, well-run airlines and weaker operators is widening. Allegiant and Sun Country are on the right side of that gap."