The airline sector in Europe has raised urgent concerns regarding impending jet fuel shortages, warning that the continent could face significant supply issues within three weeks if the Strait of Hormuz remains closed. This vital maritime route is crucial for the transportation of aviation fuel, providing approximately half of Europe’s imports.
Impending Crisis for Airports
Airports Council International (ACI) Europe has alerted its members to the growing risks associated with jet fuel availability, particularly as the summer tourism season approaches. The organisation indicated that smaller airports may bear the brunt of this crisis, with operations and air connectivity at risk of severe disruption, which could have dire economic repercussions for affected communities across Europe.
Olivier Jankovec, the director-general of ACI Europe, communicated his concerns in a letter addressed to the European commissioners for energy and tourism. He stated, “A supply crunch would severely disrupt airport operations and air connectivity – with the risk of harsh economic impacts for the communities affected, and for Europe.” Jankovec emphasised that if normal operations through the Strait of Hormuz do not resume significantly within the next three weeks, a systemic shortage of jet fuel will be inevitable for the European Union.
Rising Fuel Prices and Airline Adjustments
The aviation market is already feeling the effects of this instability. Numerous airlines worldwide have responded by reducing flight schedules and increasing ticket prices due to fears of fuel shortages. The benchmark European jet fuel price reached an unprecedented £1,387 ($1,838) per tonne last week, a dramatic increase from £831 prior to the onset of the conflict.
In light of these developments, Jankovec has called for an EU intervention, asserting that “relying on market forces and adaptation alone is not an option.” He has also pointed out the absence of a comprehensive EU assessment regarding jet fuel production and availability, urging for a coordinated response to the crisis.
Calls for Collective Action and Sustainable Solutions
To mitigate the situation, ACI Europe has proposed that the EU engage in collective purchasing of jet fuel and temporarily lift restrictions and regulations on its importation. The letter, dated 9 April and initially reported by the Financial Times, stressed that this crisis presents an opportunity to bolster support for sustainable aviation fuel (SAF) production and affordability, as conventional jet fuel prices are projected to remain elevated in the medium to long term.
Jankovec highlighted that airports handling fewer than a million passengers annually are already grappling with operational viability, a situation that could be exacerbated by the current fuel crisis. He warned that the ongoing challenges could render these airports increasingly fragile, ultimately threatening local economies and further complicating the cohesion of Europe as a whole.
Why it Matters
The potential jet fuel shortages pose a significant threat not only to the airline industry but also to the broader European economy, which relies heavily on air travel for its connectivity and economic growth. With air travel contributing €851 billion (£741 billion) to the continent’s GDP and supporting around 14 million jobs, the ramifications of this crisis could resonate far beyond the aviation sector, affecting millions and jeopardising economic stability across Europe. It is imperative for policymakers to act swiftly and decisively to avert a fuel crisis that could have lasting impacts on both the industry and the communities it serves.
