The airline sector in Europe faces a significant threat of jet fuel shortages within three weeks if the Strait of Hormuz remains closed, according to a stark warning from Airports Council International (ACI) Europe. This critical maritime corridor is vital for the continent’s aviation fuel supply, accounting for approximately half of Europe’s imports. The looming crisis raises concerns, particularly as the summer tourism season approaches, which traditionally sees an uptick in air travel.
Urgent Call for Action
Olivier Jankovec, director-general of ACI Europe, expressed growing apprehension about the availability of jet fuel in a letter addressed to the European commissioners responsible for energy and tourism. He highlighted that smaller airports could be disproportionately affected by a potential supply chain disruption. Jankovec 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.”
The warning comes as several airlines worldwide have already responded to the escalating situation by reducing flight schedules and increasing fares. The European jet fuel benchmark price has surged to an unprecedented $1,838 (£1,387) per tonne, a stark contrast to the $831 price point prior to the onset of the conflict in the region.
ACI Europe’s Recommendations
In his correspondence, Jankovec urged the European Union to take proactive measures, arguing that “relying on market forces and adaptation alone is not an option.” He expressed concerns over the absence of a coordinated EU-wide strategy for assessing and monitoring jet fuel production and availability. ACI Europe has called for the EU to consider collective purchasing initiatives for jet fuel and has suggested temporarily lifting restrictions on fuel imports.
Moreover, Jankovec viewed the current crisis as an opportunity to enhance support for sustainable aviation fuel (SAF) production. He cautioned that the price of traditional jet fuel is likely to remain elevated in the medium to long term, further complicating the industry’s recovery.
Vulnerability of Smaller Airports
Jankovec highlighted that airports processing fewer than one million passengers annually are already grappling with financial stability, and the added burden of fuel shortages could exacerbate their struggles. He warned that the ongoing crisis may render these airports even more vulnerable, potentially threatening local economies and undermining European cohesion.
The economic significance of air travel cannot be overlooked; it contributes approximately €851 billion (£741 billion) to the European GDP each year and supports around 14 million jobs across the continent.
Why it Matters
The closure of the Strait of Hormuz poses a serious threat not only to the aviation industry but also to the broader economy of Europe. If immediate actions are not taken, the consequences could ripple through local communities and contribute to a wider economic downturn. Ensuring a stable supply of aviation fuel is crucial for maintaining air connectivity, supporting jobs, and fostering economic resilience in a post-pandemic recovery landscape. The situation underscores the need for strategic interventions and collaborative efforts to safeguard the future of air travel across Europe.
