The European airline sector is bracing for significant jet fuel shortages in the coming weeks if the vital Strait of Hormuz remains congested. The Airports Council International (ACI) Europe has raised alarms about the potential impact on airport operations, particularly as the busy summer travel season approaches. With the Persian Gulf accounting for nearly half of Europe’s jet fuel imports, the situation poses a substantial threat to air travel across the continent.
Growing Concerns Over Fuel Availability
In a letter addressed to European commissioners for energy and tourism, ACI Europe’s director-general, Olivier Jankovec, expressed a pressing need for intervention. “Our members are increasingly concerned about the availability of jet fuel,” 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 without a significant and stable reopening of the Strait of Hormuz within the next three weeks, a systemic jet fuel shortage could become an unavoidable reality for the EU. This warning comes in the wake of several airlines already reducing flight schedules and increasing fares due to escalating fuel costs.
Record High Fuel Prices
Recent market trends have highlighted the severity of the situation. The benchmark European jet fuel price soared to an unprecedented $1,838 (£1,387) per tonne, a stark increase from $831 prior to the onset of the current conflict. This surge in prices has created a ripple effect, impacting both airlines and consumers.
Jankovec has called for a coordinated response from the EU, arguing that “relying on market forces and adaptation alone is not an option.” He pointed out the absence of a comprehensive EU-wide assessment and monitoring system for jet fuel production and availability, underscoring the need for immediate action.
Proposed Solutions for the Crisis
In light of the impending crisis, ACI Europe is advocating for a collective purchasing strategy for jet fuel among EU member states. The organisation has also suggested temporarily lifting restrictions on jet fuel imports to alleviate the pressure on supply chains.
Moreover, Jankovec has highlighted the importance of using this crisis as an opportunity to bolster support for sustainable aviation fuel (SAF) production and affordability. He warned that, with the price of conventional jet fuel likely to remain elevated in the medium to long term, a shift towards more sustainable options is essential for the future of air travel.
He also pointed out that smaller airports, which typically serve fewer than a million passengers annually, are already facing viability challenges. These facilities, already fragile, may struggle further should jet fuel shortages materialise, jeopardising local economies and European cohesion.
Why it Matters
The ramifications of a jet fuel shortage extend beyond the aviation sector; they pose a threat to economic stability across Europe. Air travel contributes approximately €851 billion (£741 billion) to the continent’s GDP and sustains around 14 million jobs. A disruption in fuel supply could lead to decreased connectivity, increased costs for consumers, and a detrimental impact on local communities dependent on air transport. As the situation unfolds, the EU’s response will be critical in safeguarding not just the airline industry, but the broader economic landscape of Europe.
