‘Systemic’ jet fuel crisis hits Europe, threatening summer flights

A severe jet fuel shortage is looming over Europe, driven by the ongoing closure of the Strait of Hormuz, a critical maritime bottleneck. Industry leaders warn that this disruption could become "systemic" within weeks, leading to widespread flight cancellations and higher airfares as the peak summer travel season approaches, reports CNBC.

The crisis stems from the near-total blockade of the Strait of Hormuz following the outbreak of the US-Israel-Iran war on February 28. Approximately 75% of Europe’s jet fuel imports come from the Middle East, making the region acutely vulnerable to this supply shock.

‘Systemic shortage’ warning

Airports Council International (ACI) Europe has warned that if significant traffic through the strait does not resume within three weeks, a "systemic jet fuel shortage is set to become a reality for the EU”. This warning is compounded by the fact that the last shipments of jet fuel from the Gulf are just now arriving, with no replacements currently en route.

The shortage has already triggered severe economic consequences. European benchmark jet fuel prices have more than doubled, soaring from approximately $831 per tonne before the war to a record high of $1,838 per tonne. In response, some Italian airports have already begun restricting fuel deliveries.

Airlines brace for impact

Airlines are preparing contingency plans. Lufthansa’s CEO has warned that grounding aircraft "may be unavoidable," with plans potentially including a 5% capacity cut. Ryanair has also cautioned that it might reduce its summer flight schedule by up to 10%.

The disruption has effectively eliminated the world’s top three jet fuel exporters—China, South Korea and Kuwait—from the global market due to blocked supply routes and raw material shortages. This "double whammy" has left European carriers scrambling to secure alternative supplies.

To mitigate the crisis, ACI Europe has called for urgent EU intervention, including the creation of an EU-wide fuel monitoring system and the temporary lifting of import restrictions. The European Commission is currently drafting plans to maximise refinery output.