Summary
A shortage of jet fuel in Europe and Asia is expected soon due to the Iran war and the closure of the Strait of Hormuz, a key oil shipping route. This could lead to higher flight prices and cancellations as demand rises for summer travel.
Key Facts
- Europe has about six weeks of jet fuel left, according to the International Energy Agency (IEA).
- The Strait of Hormuz, which handles about 40% of Europe’s jet fuel imports, has been closed since the war began.
- Jet fuel prices have doubled since the conflict started.
- Jet fuel makes up around 30% of airline costs.
- Some airlines have raised baggage fees and ticket prices to cover higher fuel costs.
- Airlines in Europe face fuel supplies of less than 20 days, risking shortages and flight cuts.
- The U.S. has increased jet fuel exports to Europe six times the usual amount to help fill gaps.
- The U.S., as a major oil producer, has less risk of jet fuel shortages but may see higher prices.
