Europe's Jet Fuel Crisis Deepens as Airlines Ground Flights
Europe is confronting a severe jet fuel crisis triggered by the ongoing Middle East conflict, with the International Energy Agency warning the region has only about six weeks of supply remaining. This alarming shortage has already forced multiple airlines to cancel and ground flights, with industry experts predicting further disruptions if the situation persists.
IEA Issues Dire Warning Over Energy Supplies
Fatih Birol, executive director of the International Energy Agency, stated that flight cancellations could follow soon if oil supplies continue to be restricted by the Iran war. Iran maintains control over tankers navigating through the critical Strait of Hormuz, which Birol described as triggering the largest energy crisis we have ever faced.
He emphasised that Asian nations including Japan, India and China, which depend heavily on Middle Eastern energy supplies, are on the front line, with pressure expected to spread to Europe and the Americas shortly. Birol warned that if the Strait of Hormuz remains blocked, the knock-on effect could mean some flights between cities might be canceled due to jet fuel shortages.
Airlines Already Taking Action
Several major carriers have already implemented flight reductions and cancellations in response to the crisis:
- SAS: Cancelling 1,000 flights in April after grounding hundreds in March
- United Airlines: Planning to cancel 5% of flights in second and third quarters of 2026
- KLM: Cancelling 160 flights for the coming month
- Asiana Airlines: Slashing 22 flights between April and July
- Cathay Pacific: Cutting about 2% of scheduled passenger flights from mid-May to end of June
- HK Express: Reducing approximately 6% of flights
- Lufthansa CityLine: Grounding 27 planes earlier than planned
- Vietnam Airlines: Cancelling 23 weekly domestic flights from April
- Air New Zealand: Cutting back on flights over next two months, impacting 1,100 flights
- Norse Atlantic Airways: Removing all Los Angeles flights from summer schedule
Major Carriers Monitoring Situation Closely
While airlines including British Airways, Ryanair and easyJet have highlighted the potential impact of fuel price increases on ticket costs and schedules, they have not yet cancelled flights directly due to the crisis. However, BA is discontinuing its London Heathrow to Jeddah route, citing shifting demand patterns.
EasyJet chief executive Kenton Jarvis recently sought to reassure passengers, stating all airports the airline serves are operating as normal. He noted the industry typically has only three to four weeks' visibility of jet fuel supplies, which remains unchanged from pre-crisis levels. We have visibility to the middle of May, and we have no concerns, Jarvis stated, adding that airports and fuel suppliers are working effectively to maintain supplies.
Financial Impact on Airlines
The Middle East conflict has already created significant financial strain for carriers. EasyJet revealed the conflict cost the airline approximately £25 million in elevated jet fuel costs last month alone. The Luton-based carrier anticipates reporting a headline pre-tax loss between £540 million and £560 million for the six months ending in March.
The crisis has created near-term uncertainty around fuel costs and customer demand, according to easyJet. Bookings have dropped by two percentage points for both the June and September quarters compared to the previous year. This warning about larger-than-expected first half losses caused easyJet shares to tumble as much as 9% during early Thursday trading before stabilising around 4% down.
The aviation industry now faces unprecedented challenges as it navigates what the IEA describes as the most severe energy crisis in history, with the coming weeks likely to determine the extent of further flight disruptions across Europe and beyond.
