Europe may soon experience significant jet fuel shortages if the Strait of Hormuz remains closed, according to a warning from Airports Council International (ACI) Europe. The Persian Gulf is a crucial supplier of aviation fuel, providing approximately 50% of the continent’s imports.
As the summer tourism season approaches, ACI Europe has expressed growing concerns regarding the availability of jet fuel, particularly for smaller airports that are more susceptible to supply disruptions.
Olivier Jankovec, the organization’s director-general, highlighted in a letter to European commissioners for energy and tourism that a fuel shortage could severely disrupt airport operations and air travel connectivity, leading to adverse economic effects for affected communities and the broader European economy.
Jankovec stated, “If passage through the Strait of Hormuz does not stabilize within the next three weeks, we are likely facing a systemic jet fuel shortage in the EU.”
In response to these concerns, several airlines globally have already reduced flight schedules and increased ticket prices due to anticipated fuel limitations. Last week, the price of benchmark European jet fuel surged to an unprecedented $1,838 (£1,387) per tonne, a stark increase from $831 prior to the onset of conflict in the region.
Jankovec urged the European Union to take action, asserting that relying solely on market dynamics is insufficient. He criticized the absence of a comprehensive EU assessment and monitoring system for jet fuel production and supply.
To combat this crisis, ACI Europe has proposed collective purchasing of jet fuel by EU nations and called for a temporary suspension of restrictions on jet fuel imports. In his letter, dated April 9 and first reported by the Financial Times, Jankovec emphasized that this situation should serve as a catalyst to enhance support for sustainable aviation fuel (SAF) production and affordability, noting that conventional jet fuel prices are likely to remain elevated in the medium to long term.
He also pointed out that airports with fewer than one million passengers annually are already facing viability challenges, which could be exacerbated by fuel shortages. The current situation poses a risk to the stability of these airports and their surrounding communities, potentially undermining European cohesion.
Air travel contributes €851 billion (£741 billion) to the GDP of European economies each year and supports approximately 14 million jobs.
By: Magdalene Agyeiwaa Sarpong