The European airline industry is bracing for potential jet fuel shortages if the Strait of Hormuz remains closed for more than three weeks, according to a warning from the Airports Council International (ACI) Europe. With the Gulf region accounting for approximately 50% of the continent’s aviation fuel imports, the upcoming summer travel season could be severely affected, particularly for smaller airports that are less equipped to handle supply disruptions.
A Rising Concern for Airports
As the summer holiday season approaches, ACI Europe has expressed growing anxiety over the availability of jet fuel. Olivier Jankovec, the organisation’s director-general, conveyed these concerns in a letter to European commissioners responsible for energy and tourism. He noted that a prolonged closure of the Strait would lead to a significant fuel supply crisis, with dire consequences for airport operations and air connectivity across Europe.
Jankovec underscored the economic ramifications, stating, “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.” He urged immediate EU intervention, asserting that “relying on market forces and adaptation alone is not an option,” given the gravity of the situation.
Current Fuel Prices and Industry Response
The situation is exacerbated by soaring fuel prices. Last week, the benchmark price for European jet fuel reached an unprecedented $1,838 (£1,387) per tonne, a stark increase from $831 prior to the onset of the conflict in the Middle East. This surge has already led several airlines worldwide to reduce flight schedules and increase passenger fares in response to escalating fuel costs.
In light of these developments, ACI Europe is advocating for the EU to explore collective purchasing strategies for jet fuel. Jankovec has also called for a temporary suspension of restrictions on the importation of jet fuel to help mitigate the crisis. Furthermore, he suggested that this situation presents an opportunity to bolster support for sustainable aviation fuel (SAF) production, noting that the price of conventional jet fuel is likely to remain elevated in the medium to long term.
Vulnerability of Smaller Airports
The warning comes as smaller airports, which often handle fewer than one million passengers annually, are already struggling to maintain operational viability. According to Jankovec, the ongoing crisis could further jeopardise these facilities, potentially threatening local economies and undermining European cohesion. Air travel is a significant contributor to the EU economy, generating €851 billion (£741 billion) in GDP annually and supporting approximately 14 million jobs.
A government spokesperson has reassured that UK airlines are currently reporting no disruptions to fuel supplies and are operating normally, yet the broader implications of the crisis are looming.
Looking Ahead
As the situation develops, the industry remains on high alert. The aviation sector’s reliance on stable fuel supplies is clear, and without swift action, the repercussions could extend beyond the airlines themselves, impacting travellers, local communities, and the wider European economy.
Why it Matters
The potential jet fuel shortage highlights the fragility of the aviation sector, particularly in times of geopolitical instability. As the EU faces escalating fuel prices and constraints on supply, the need for strategic interventions and a focus on sustainable alternatives becomes increasingly critical. The outcome of this crisis will not only affect airlines but also the millions of jobs and the economic stability of local communities across Europe that depend on a thriving air travel industry.
