EU airline industry warns of fuel shortages if Strait of Hormuz stays closed

EU Airline Industry Warns of Fuel Shortages if Hormuz Remains Closed

The European airports sector has raised alarms about potential jet fuel shortages within three weeks if the Strait of Hormuz remains blocked. This critical waterway serves as a vital conduit for aviation fuel, supplying roughly half of the continent’s imports. As summer travel demand rises, ACI Europe, representing the region’s airports, highlighted growing worries over fuel availability.

Smaller airports are at particular risk, according to the organization. In a letter to EU energy and tourism commissioners dated 9 April, ACI Europe’s director-general, Olivier Jankovec, emphasized that a supply disruption could significantly hinder airport operations and air travel links. Such an event might have severe economic consequences for both local populations and the broader European economy.

Fuel Price Surge and Industry Response

Jet fuel prices in Europe have recently reached a record high, climbing to $1,838 per tonne—a stark increase from $831 before the conflict began. Several global airlines have already adjusted their schedules and raised passenger fees in anticipation of supply issues. Jankovec stressed that relying solely on market forces is insufficient, calling for immediate EU intervention.

“If the passage through the Strait of Hormuz does not resume in a meaningful and steady manner within the next three weeks, a systemic jet fuel shortage is expected to materialize for the EU,” he stated.

Call for Collective Measures

The organization urged the EU to adopt collective purchasing strategies for jet fuel. It also recommended temporarily easing restrictions on fuel imports to mitigate the crisis. Jankovec further advocated for increased support for sustainable aviation fuel (SAF) production, noting that conventional fuel prices are likely to stay elevated in the coming years.

He warned that the current situation could exacerbate the financial strain on underperforming airports, which already struggle to maintain operations. Without addressing fuel shortages, these facilities might face even greater challenges, potentially undermining European unity and regional stability.

Economic Contribution of Air Travel

Air travel plays a significant role in Europe’s economy, contributing €851bn annually to GDP and supporting 14 million jobs. The looming fuel crisis threatens this substantial contribution, highlighting the urgent need for coordinated action to safeguard the sector’s resilience.