Airports have warned that jet fuel could run short within three weeks in Europe if oil supplies do not resume through the Strait of Hormuz, raising concerns over flight cancellations in the UK and EU during the summer holiday season. The warning came from Airports Council International (ACI) Europe, which wrote to the EU's energy and transport commissioners stating that the bloc is three weeks away from shortages.
Jet fuel shortages will become so acute without the resumption of supplies from the Middle East that cancellations across Europe will be inevitable, disrupting travel plans for potentially millions of passengers. The crisis follows Iran's effective closure of the Strait of Hormuz in retaliation for the US and Israel's war on Iran, causing oil prices to soar since March.
Donald Trump this week announced a two-week ceasefire, but Brent crude oil prices remained at about $96 a barrel on Friday amid concerns over whether it would hold. Before the war, oil traded at about $72. Global jet fuel prices have more than doubled compared with last year to $1,650 a tonne, according to Iata data.
Rico Luman, a senior economist at ING, said that some airlines might be forced to cancel flights within weeks as fuel reserves run down, particularly at smaller airports. Smaller airlines in the UK have already been forced to cancel some flights, including Skybus and Aurigny. Ryanair's chief executive Michael O'Leary said the airline is considering cutting 10% of its flights.
A UK government spokesperson said British aircraft have not reported any disruption to fuel supplies and are operating as normal, adding that they are engaging with carriers to support operations against the backdrop of war in the Middle East. The last cargo of European jet fuel to pass through the Strait of Hormuz before the war began is due to arrive in Copenhagen on Saturday, while the final tanker destined for the UK arrived in Kent on Tuesday.
