The airline industry in Europe is sounding the alarm over potential jet fuel shortages within weeks if the Strait of Hormuz remains closed. This critical maritime passage is a vital conduit for aviation fuel, supplying roughly 50% of Europe’s imports. Airports Council International (ACI) Europe has voiced serious concerns regarding the availability of jet fuel as the summer travel season approaches, warning that smaller airports could be disproportionately affected.
Urgent Call for EU Action
In a letter addressed to European commissioners for energy and tourism, ACI Europe’s director-general, Olivier Jankovec, highlighted the grave implications of a prolonged closure of the Strait. He stated that without a significant and stable reopening within the next three weeks, Europe could face a systemic jet fuel shortage. “A supply crunch would severely disrupt airport operations and air connectivity, risking harsh economic impacts for the communities affected and for Europe as a whole,” Jankovec warned.
The pressures of the current situation are already evident, with several airlines globally announcing flight reductions and increased fares in response to the anticipated fuel shortages. Last week, the European benchmark price for jet fuel surged to an unprecedented $1,838 (£1,387) per tonne, a stark rise from $831 prior to the onset of recent conflicts.
Proposals for Mitigating the Crisis
In light of these developments, Jankovec has urged the European Union to take decisive action. He expressed that depending solely on market forces and adaptive measures is not a viable solution. ACI Europe is advocating for the EU to explore collective purchasing strategies for jet fuel and is calling for temporary suspension of restrictions on jet fuel imports.
The letter, dated 9 April, also emphasised the need for the EU to enhance support for sustainable aviation fuel (SAF) production, recognising that the cost of conventional jet fuel is likely to remain elevated in the medium to long term. Jankovec pointed out that many airports handling fewer than one million passengers annually are already facing viability issues, a situation that could be exacerbated by fuel shortages.
Impact on Local Economies and Employment
The ramifications of a jet fuel crisis extend beyond the aviation sector. Air travel contributes approximately €851 billion (£741 billion) to the European economy each year and supports around 14 million jobs. The disruption of air connectivity could threaten not just the viability of smaller airports but also local communities reliant on tourism and travel-related industries.
As the summer season approaches, the urgency for a coordinated response from the EU becomes ever more pressing. The potential for a fuel supply crisis poses a significant threat to Europe’s economic stability and cohesion, highlighting the interconnectedness of global supply chains and the need for strategic planning in the face of geopolitical uncertainties.
Why it Matters
The closure of the Strait of Hormuz could precipitate a crisis that affects millions of passengers and countless jobs across Europe. The airline industry, already grappling with the aftermath of the pandemic, now faces yet another challenge that could undermine its recovery and threaten regional economies. A proactive approach from European leaders could not only alleviate immediate fuel supply concerns but also pave the way for sustainable alternatives that bolster the resilience of the aviation sector in the long term.
