A European airports trade association has issued a warning about a “systemic” jet fuel shortage ahead of the busy summer travel period if the Strait of Hormuz is not reopened soon.
Airports Council International (ACI), representing over 600 airports, has written to European commissioners responsible for energy, transport, and tourism. reports Breaking News.
The organisation’s director-general Olivier Jankovec stated in the letter: “At this stage, we understand that if the passage through the Strait of Hormuz does not resume in any significant and stable way within the next three weeks, systemic jet fuel shortage is set to become a reality for the EU. The fact that we are entering the peak summer season… is only adding to those concerns,” reports Breaking News.
Supplies of jet fuel, essential for aircraft operations, from the Middle East have been disrupted due to the US-Israel conflict with Iran, which has resulted in Iran effectively shutting down the Strait of Hormuz, a vital global shipping route.
This disruption has driven prices sharply higher and raised concerns that flight operations could be impacted, given Europe’s dependence on imported fuel, reports Breaking News.
Experts have also noted that increases in jet fuel prices tend to be passed on to airline ticket prices more quickly than increases in road fuel or household energy costs.
Ryanair chief Michael O’Leary said earlier this month that if the conflict continues, there is a risk of “disruptions in Europe in May and June”, adding that “maybe 10%, 20%, 25% of our supplies might be at risk”, reports Breaking News.
UK Prime Minister Keir Starmer has been meeting Gulf allies to discuss ways to support what he described as a “fragile” ceasefire between the US and Iran agreed earlier this week.
He also held talks with US President Donald Trump about the need for a “practical plan” to restore shipping through the Strait of Hormuz, amid reports that Tehran may seek to charge vessels for passage, reports Breaking News.
In its correspondence, ACI urged the European Commission to closely monitor jet fuel availability over the next six months and to identify measures to boost production within the EU.
It also called for consideration of temporarily easing restrictions that currently limit the import of jet fuel, reports Breaking News.
“This crisis has exposed the reduced refining capacity of the EU for jet fuel production, and its acute dependence on imports from other world regions,” Mr Jankovec warned on behalf of the organisation, reports Breaking News.
Susannah Streeter, chief investment strategist at Wealth Club, said: “Carriers have had to deal with a more than doubling of fuel costs since the conflict erupted and the threat of shortages lingers, reports Breaking News.
“As the war has put a chokehold on supplies from the Middle East, it has caused other nations which produce jet fuel to impose export bans, causing trade to seize up further. It will take time to unwind panic positions, and for jet fuel prices to stabilise, so airlines are likely to continue to pass on the cost to passengers for the foreseeable future,” reports Breaking News.
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