Airports across Europe have warned that jet fuel could run short within three weeks if oil supplies through the Strait of Hormuz do not resume, raising fears of widespread flight cancellations during the summer holiday season. The warning from Airports Council International (ACI) Europe, in a letter to EU commissioners, stated that the bloc is three weeks away from a systemic jet fuel shortage.
The crisis follows Iran's effective closure of the Strait of Hormuz in retaliation for US and Israeli attacks, causing oil prices to surge. Despite a two-week ceasefire announced by Donald Trump, Brent crude remained at about $96 a barrel on Friday, up from $72 before the conflict. Global jet fuel prices have more than doubled year-on-year to $1,650 a tonne, with Europe seeing a 138% increase.
Smaller airports are particularly vulnerable, with typical reserves covering only four to five weeks, according to ING senior economist Rico Luman. Airlines are expected to cut less popular leisure routes first. Some UK carriers have already cancelled flights, including Skybus and Aurigny. Ryanair is considering a 10% reduction in flights, while Air New Zealand, AirAsia X, Vietnam Airlines, and SAS have also cut services.
The last cargo of European jet fuel from the Gulf arrived in Copenhagen on Saturday, with the final tanker for the UK docking in Kent on Tuesday. Europe sources over 60% of its jet fuel from Gulf refineries, with more than 40% shipped through the Strait of Hormuz. Alternative routes are limited, as jet fuel cannot use pipelines available for crude oil.
A UK government spokesperson stated that British aircraft have not reported disruptions and are operating normally, with engagement ongoing to support carriers and limit passenger impact. The fare increases are expected to contribute to higher inflation.
