EU airline industry warns of fuel shortages if Strait of Hormuz stays closed

EU Airline Industry Warns of Fuel Shortages if Strait of Hormuz Stays Closed

Fuel Crisis Alert

The European aviation sector faces a critical risk of fuel scarcity within three weeks if the Strait of Hormuz remains closed, according to the continent’s airport trade body. This vital maritime passage is central to global fuel supply chains, with the Persian Gulf supplying nearly half of Europe’s aviation fuel imports. As the summer travel season approaches, concerns over fuel availability are intensifying, prompting urgent calls for action.

Summer Travel Season Threat

With the looming summer period, the availability of jet fuel has become a pressing issue. Smaller airports, in particular, are at greater risk of operational disruption due to limited reserves and reliance on regional supply networks. ACI Europe highlighted this vulnerability, warning that a prolonged shortage could lead to severe economic consequences for local communities and the broader European economy.

Global Airlines Adjust Strategies

Several airlines worldwide have already taken measures to mitigate potential fuel shortages. These include reducing flight schedules and increasing passenger fees. The situation has prompted a sharp rise in jet fuel prices, with the European benchmark reaching $1,838 per tonne—a record high compared to $831 before the conflict began.

“A supply crunch would severely disrupt airport operations and air connectivity – with the risk of harsh economic impacts for the communities affected, and for Europe,” wrote Olivier Jankovec, director-general of ACI Europe, in a letter to European commissioners.

EU’s Call for Intervention

Jankovec emphasized that the EU must act swiftly to prevent a systemic fuel crisis. He argued that relying solely on market forces is insufficient, stressing the need for coordinated efforts in purchasing and monitoring fuel supplies. The letter, dated 9 April and reported by the Financial Times, also urged the EU to support sustainable aviation fuel (SAF) production and affordability, noting that conventional fuel prices are expected to remain elevated.

Strategies for Stability

ACI Europe proposed temporary relaxation of import restrictions to ease pressure on the market. It also called for a unified assessment of fuel production and availability across the bloc. Jankovec warned that even without fuel shortages, airports serving less than a million passengers annually are struggling with financial viability, raising concerns about their resilience in the current climate.

Broader Economic Implications

The crisis threatens not only individual airports but also the cohesion of European communities. Air travel is a cornerstone of the continent’s economy, contributing €851bn to GDP annually and sustaining 14 million jobs. A prolonged disruption could have far-reaching effects, underscoring the urgency of addressing the fuel supply challenge.