Jet fuel supplies are lagging. What does that mean for airlines and travelers?
Summary
Jet fuel supplies in Europe and Asia are running low due to the Iran war and the closure of the Strait of Hormuz, a key shipping route. This shortage may cause higher ticket prices and flight cancellations soon, just before the busy summer travel season.Key Facts
- Europe has about six weeks of jet fuel left according to the International Energy Agency (IEA).
- The Strait of Hormuz, accounting for 40% of Europe’s jet fuel imports, is closed because of the war involving Iran.
- Jet fuel costs have roughly doubled since the conflict began.
- Jet fuel makes up about 30% of airline operating costs.
- Some airlines have raised fees and ticket prices due to higher fuel costs.
- A few airlines have already started reducing flights because of fuel shortages.
- Jet fuel is produced from crude oil and delivered by ships and pipelines to airports.
- Larger airlines may manage shortages better due to bigger financial reserves and fuel storage.
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