British airlines have called on the government to draw up an emergency jet fuel plan, warning that failure to do so could lead to summer holiday chaos. Airlines UK, a trade body representing British carriers, said ministers must act now to avoid disruption later, citing the 'immediate impact on the UK aviation sector and UK consumers in the event disruption to jet fuel supply continues or worsens.'
Proposed measures
The trade body called for building fuel reserves by increasing kerosene production at oil refineries and importing US-grade fuel suitable for some aircraft. Additionally, Airlines UK urged the government to cut taxes and suspend certain environmental regulations.
Industry and EU responses
On the same day, Germany's Lufthansa announced it would cut 20,000 flights within Europe from May to October to save 40,000 tons of jet fuel. The EU also announced guidance for airlines on handling issues like airport slots, passenger rights, and public service obligations in case of jet fuel shortages due to the Iran war. Apostolos Tzitzikostas, the EU's transport chief, stated there were no shortages 'as of today' but warned that a prolonged blockage of the Strait of Hormuz would be 'catastrophic' for Europe and the global economy.
Fuel supply and monitoring
About one-fifth of the world's oil and liquefied natural gas transited Hormuz before the US and Israel began bombing Iran on February 28. The EU imports 30% to 40% of its jet fuel, with about half from the Middle East. The European Commission is expected to present a broader package of energy and transport measures on Wednesday. Tzitzikostas announced a new 'fuel observatory' to monitor supplies, starting with jet fuel. He emphasized that emergency stocks must be used transparently to avoid market distortions.
Current situation and outlook
The International Energy Agency warned last week that physical shortages could begin as soon as June, but European airlines currently report only higher prices. A spokesperson for IAG, owner of British Airways and Iberia, said they were 'not seeing disruption to jet fuel supply in our main airports, but our airlines are already facing rising fuel costs.' German logistics group DHL said it could secure fuel for its cargo planes in Europe into June, though the outlook for its Asian operations remains uncertain.
Long-term solutions
The Commission aims to use the crisis to accelerate development of sustainable aviation fuel (SAF) and synthetic fuels to reduce reliance on Middle East imports. However, global airline group IATA warned last year that SAF production remains too low and costs up to five times more than conventional jet fuel. The EU's anti-tankering rules already allow exemptions in case of shortages, and the Commission will clarify the framework on Wednesday. It is also examining alternative imports, including US Jet A fuel, which has a higher freezing point than the European standard.
Tzitzikostas reassured that there is no need to intervene in how people live, work, or travel, stating, 'Europe is ready to welcome all the tourists and guests during the summer period.' He added that high fuel prices would not justify waiving passenger compensation for delays or cancellations.
