Iran War Soars Fuel Costs; Airlines Ground Jets

The U.S.-Israeli war against Iran, which began on February 28, has driven up jet fuel prices by 270% for Nigerian airlines, forcing carriers to hike fares, introduce surcharges, and cut routes. The ongoing closure of the Strait of Hormuz removes roughly a fifth of global oil and liquefied natural gas supplies, exacerbating shortages.

EasyJet CEO Kenton Jarvis noted a shift to later bookings and more domestic travel, with bookings for the July-to-September quarter 30% sold. Analysts like Dudley Shanley of Goodbody predict further capacity cuts and groundings, stating airline profit outlooks will be pulled back due to slower bookings and lower yields.

The European Union is drafting emergency plans and importing record jet fuel from the United States, while Australia's Prime Minister Anthony Albanese secured 100 million litres of diesel from Brunei and South Korea to cushion supply shocks.