Europe has only six weeks of jet fuel left before shortages hit because of the Iran war, according to Fatih Birol, executive director of the International Energy Agency (IEA). He warned that flight cancellations would occur "soon" if oil supplies from the Middle East are not restored within the coming weeks.
KLM, part of the Air France-KLM group, announced on Thursday it would cut 160 flights in the coming month due to high kerosene jet fuel prices. Although this represents less than 1% of its schedule, the cancellations highlight financial pressures on the airline industry. The Dutch airline stated that the flights are "no longer financially viable to operate" but stressed there is no kerosene shortage.
The US-Israel war on Iran, which began in late February, has disrupted global energy markets. Iran has effectively closed the Strait of Hormuz, a vital oil export route. A two-week ceasefire agreed last week has failed, though indirect talks brokered by Pakistan continue. Brent crude oil prices remain over 30% higher than before the war.
Birol told the Associated Press that Europe has "maybe six weeks or so [of] jet fuel left." His comments follow a warning from Airports Council International Europe that the bloc is three weeks away from shortages. Airlines and airports typically hold about six weeks of fuel supplies, but the prolonged conflict has depleted reserves, and alternative suppliers cannot replace Gulf shipments.
Some airlines have cancelled loss-making flights due to higher fuel prices. Even Air France-KLM, which has hedged 87% of its fuel exposure, cut flights on busy routes from Amsterdam to London and Düsseldorf. Under EU and UK rules, airlines can adjust schedules without compensation if passengers are offered alternatives more than two weeks in advance.
British airline easyJet said on Thursday it has no fuel supply concerns for the next month. Chief executive Kenton Jarvis stated: "We have visibility to the middle of May and we have no concerns." However, Birol warned that the situation is a "dire strait" with major implications for the global economy, including higher petrol, gas, and electricity prices.
