Jet Fuel Shortages Loom for Europe
Europe is at risk of experiencing jet fuel shortages within three weeks if the Strait of Hormuz remains closed, according to warnings from the continent's airport trade body.
The Persian Gulf region is a critical source of aviation fuel, supplying approximately 50% of Europe's imports.
Concerns Raised by Airports Council International Europe
Airports Council International (ACI) Europe has expressed "increasing concerns" regarding the availability of jet fuel, especially as the summer tourism season approaches. The organization highlighted that smaller airports are particularly vulnerable to supply disruptions.
"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,"
ACI Europe's director-general Olivier Jankovec wrote in a letter addressed to the European commissioners responsible for energy and tourism.
"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."
Impact on Airlines and Fuel Prices
Several airlines worldwide have already reduced flight schedules and increased passenger charges due to concerns about fuel shortages. Last week, the benchmark European jet fuel price reached an all-time high of $1,838 (£1,387) per tonne, a significant increase from $831 per tonne before the onset of the war.
Calls for EU Intervention
Jankovec urged the European Union to take decisive action, stating that "relying on market forces and adaptation alone is not an option." He criticized the absence of an EU-wide assessment and monitoring system for jet fuel production and availability.
ACI Europe has proposed that the EU engage in collective purchasing of jet fuel and has called for the temporary lifting of restrictions and regulations on jet fuel imports.
The letter, dated 9 April and initially reported by the Financial Times, stated: "This crisis should also be the opportunity to reinforce support for SAF [sustainable aviation fuel] production and affordability,
"The price of conventional jet fuel is likely to remain at higher levels in the medium to long-term."
Vulnerability of Smaller Airports
Jankovec also noted that airports handling fewer than one million passengers annually were already facing challenges to their viability, even before considering the impact of jet fuel shortages.
"Airports with fewer than a million passengers per year were already struggling with viability 'without even accounting for the impact of jet fuel shortages'."
He warned that the current crisis could further weaken these airports, threaten local communities, and potentially affect European cohesion.
Economic Significance of Air Travel
Air travel contributes approximately €851 billion (£741 billion) annually to the GDP of European economies and supports 14 million jobs.
