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Airline Industry · Energy Prices · Jet Fuel Shortage · Supply Chain
A global jet fuel shortage, exacerbated by the war in Iran and the closure of the Strait of Hormuz, forces Asian airlines to slash services and threatens European carriers with supply disruptions within weeks, as jet fuel prices have nearly doubled in the past month.
Jet fuel has more than doubled in price over the past year. Several Asian airlines, including Vietnam Airlines, which suspended seven domestic routes, and Korean Air, now in 'emergency management mode,' have already canceled routes until September due to reliance on Persian Gulf fuel.
Germany’s Lufthansa prepares to ground planes. Major UK-based carriers, such as IAG (British Airways owner), report having five to six weeks of fuel supply, as understood by City AM, before potential shortages.
Ryanair boss Michael O’Leary told Sky News that 10 to 25 percent of Ryanair's supplies are at risk through May and June. Despite these operational concerns, London-listed airlines, including Ryanair, IAG, Wizz Air, and Easyjet, rallied over four percent, after Donald Trump predicted US operations in the region would end within three weeks.
Airlines UK confirms no immediate disruption for UK airlines but monitors the situation.
