Summary
Jet fuel prices have jumped by over 80% due to disruptions in supply from the Gulf. This increase could lead to higher airfares and possible flight cancellations. Airlines use strategies like hedging to manage fuel costs, but not all carriers are fully protected against these price jumps.
Key Facts
- Jet fuel prices have risen more than 80% following US and Israeli air strikes on Iran.
- The Gulf provides about 50% of Europe's jet fuel imports, but supply is now disrupted.
- Before the strikes, jet fuel in Europe cost $830 per ton; it now exceeds $1,500.
- Fuel costs make up 20-40% of airlines' expenses.
- Some airlines use hedging to lock in fuel prices but not all do, leaving some exposed.
- Wizz Air expects a €50 million impact on profits due to fuel costs.
- Ryanair and EasyJet report being well-protected from immediate fuel price effects.
- Experts warn of potential flight cancellations or delays due to fuel shortages.
