EU airline industry warns of fuel shortages if Strait of Hormuz stays closed

EU Airline Industry Warns of Fuel Shortages if Hormuz Remains Closed

As the summer travel season approaches, the European Union’s airline sector is bracing for a potential crisis, with the risk of jet fuel shortages escalating if the Strait of Hormuz remains blocked. The Airports Council International (ACI) Europe, representing the continent’s airports, has highlighted that this critical waterway’s closure could trigger a supply shortfall within three weeks.

The Persian Gulf serves as a vital source of aviation fuel, contributing roughly half of Europe’s total imports. With the current geopolitical tensions, ACI Europe has raised alarms about the dwindling availability of jet fuel, emphasizing that smaller airports face heightened risks.

“A disruption in fuel supply would significantly affect airport operations and air travel links, posing a threat to both local communities and the broader European economy,” stated Olivier Jankovec, ACI Europe’s director-general, in correspondence with European officials.

Global airlines have already taken measures, reducing flight schedules and increasing passenger fees amid fears of fuel scarcity. The recent surge in demand has driven European jet fuel prices to a record high of $1,838 per tonne, compared to $831 before the conflict began.

Jankovec urged immediate EU action, arguing that relying solely on market adjustments is insufficient. He pointed out the absence of a unified assessment of fuel production and availability across the region. To mitigate the issue, ACI Europe proposed a collective approach to fuel procurement and the temporary easing of import restrictions.

The letter, dated 9 April and first shared by the Financial Times, also called for strengthened support for sustainable aviation fuel (SAF) production. Jankovec noted that conventional fuel prices are expected to stay elevated for the foreseeable future.

Smaller airports, serving less than a million passengers annually, are already grappling with sustainability challenges. Without considering the impact of fuel shortages, these facilities may struggle further. The ongoing situation could undermine the resilience of local communities and jeopardize the unity of the European region.

Air travel plays a significant role in Europe’s economy, generating €851bn in GDP annually and supporting 14 million jobs. The current crisis threatens to disrupt this essential sector, underscoring the urgency of coordinated responses.