European air travel faces growing challenges from fuel price hikes, falling demand, and regulatory pressure, investment analysts warned.

Apollo Investment Group’s chief economist said that Britain, France, and Germany — along with Australia — were the countries most vulnerable to rising jet fuel prices.

Morgan Stanley told investors that it was “crunch time for EU airports” over the coming months, as the Iran war’s price hikes reduce demand for air travel.

The airline industry has already been badly hit by the war: Prices were up 24% year-on-year in March, and airlines have called for reductions in passenger taxes to protect them from the worst impacts.