The European airline industry is sounding alarms over potential jet fuel shortages that could materialise within weeks if the Strait of Hormuz remains obstructed. This crucial maritime route is vital for aviation fuel supplies, with approximately half of Europe’s jet fuel imports sourced from the Persian Gulf. The Airports Council International (ACI) Europe has raised concerns that smaller airports, in particular, may be disproportionately affected, jeopardising air travel and local economies as the summer tourism season approaches.
Urgent Warnings from ACI Europe
In a letter addressed to European commissioners responsible for energy and tourism, ACI Europe’s director-general, Olivier Jankovec, expressed serious concerns regarding the availability of jet fuel. He stated, “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 ramifications of such a supply crunch could severely disrupt airport operations and air connectivity, leading to significant economic consequences for affected communities as well as the broader European economy.
The situation is compounded by rising fuel prices, with the benchmark European jet fuel price recently reaching an unprecedented $1,838 (£1,387) per tonne—up from $831 before the onset of the current conflict in the region. As a result, several airlines have already begun to scale back flights and increase ticket prices to mitigate the impact of fuel scarcity.
Calls for EU Intervention
Jankovec has urged EU authorities to take proactive measures, arguing that “relying on market forces and adaptation alone is not an option.” He highlighted the absence of a comprehensive EU-wide assessment of jet fuel production and availability, underscoring the need for a coordinated response. To address the crisis, ACI Europe advocates for collective purchasing strategies for jet fuel and the temporary lifting of restrictions and regulations on its importation.
The letter, penned on 9 April and reported by the Financial Times, also pointed out that this crisis could serve as a pivotal moment to bolster support for sustainable aviation fuel (SAF) production and affordability. Jankovec noted that the price of conventional jet fuel is likely to remain elevated in the medium to long term, creating further challenges for the aviation sector.
Vulnerabilities of Smaller Airports
Particularly alarming for ACI Europe is the fragility of smaller airports, which often handle fewer than a million passengers annually. Many of these airports are already operating on thin margins, and the added strain of jet fuel shortages could jeopardise their viability. Jankovec warned that this crisis could exacerbate their challenges, threatening communities and potentially undermining European cohesion.
Air travel significantly contributes to the European economy, generating approximately €851 billion (£741 billion) in GDP annually and supporting around 14 million jobs. Disruptions to the airline industry could have far-reaching consequences, not only for the sector itself but also for the broader economic landscape across Europe.
Why it Matters
The potential for jet fuel shortages in Europe underscores the interdependence of global supply chains and the fragility of the aviation industry amid geopolitical tensions. With the summer season approaching, the implications of this crisis extend beyond mere operational challenges; they threaten local economies, tourism, and jobs. As Europe grapples with energy security in an uncertain global landscape, decisive action from EU authorities will be crucial in mitigating the fallout and ensuring the resilience of the aviation sector.
