József Váradi, the chief executive of Wizz Air, has expressed doubt that European airports will face jet fuel shortages, contradicting warnings from European officials about dwindling supplies. Speaking to journalists in London, Váradi acknowledged that prospective passengers are hesitant to book flights but expressed confidence that consumer demand would respond to price incentives.
Fuel Prices and Creative Solutions
Váradi highlighted that jet fuel currently costs $1,500 per metric tonne, more than double pre-conflict levels. He argued that this high price creates opportunities for innovative solutions. "I know for a fact that tankers are going to the United States to pick up jet fuel and bring that to Europe," he said, dismissing the idea that the continent would run out of fuel.
He added: "I don't think that everyone is just waiting and seeing what's going to happen. You will see a much better outcome than if you did nothing."
Comparisons to COVID-19
Váradi predicted that if shortages did emerge, they would be managed on a location-by-location basis, similar to the COVID-19 pandemic. "This is not going to be like every single European airport is going to be hit at the same minute on the same hour," he said. He noted that multiple suppliers would be in different positions, allowing airports to source fuel from alternative providers.
He also suggested "tankering" as a potential solution, where aircraft carry enough fuel for the return leg of a journey. While the European Union penalises this practice due to increased fuel burn, rules are expected to be relaxed if shortages arise.
Market Impact and Future Outlook
The leaders of Ryanair and easyJet have indicated limited visibility of fuel supplies for the peak summer season. Váradi warned that if shortages occur, the situation would be "a mess" requiring "micromanagement." He expects jet fuel prices to remain high, leading to a significant reduction in capacity in September and October.
Despite the warnings, Váradi remains optimistic: "I don't think we're going to be running out of fuel."
