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

EU Airline Industry Fears Fuel Shortages If Hormuz Remains Closed

The European airports trade body has issued a stark warning that the continent could face jet fuel shortages within three weeks if the Strait of Hormuz remains blocked. This vital waterway is a key source of aviation fuel, supplying about half of Europe’s imports. As the summer travel season approaches, concerns over fuel availability are intensifying, with smaller airports identified as particularly at risk.

ACI Europe’s director-general, Olivier Jankovec, highlighted the potential economic fallout in a letter to the European commissioners for energy and tourism. He stated,

“A supply crunch would severely disrupt airport operations and air connectivity – with the risk of harsh economic impacts for the communities affected, and for Europe.”

The warning underscores the urgency of resolving the crisis, as the passage through the Strait of Hormuz may not resume significantly for another three weeks.

Global airlines have already responded to the looming shortage by cutting flights and increasing passenger fees. Last week, the benchmark European jet fuel price surged to a record high of $1,838 per tonne, compared to $831 before the conflict began. Jankovec emphasized that relying solely on market forces is insufficient, calling for EU intervention to address the situation.

The letter, dated 9 April and first reported by the Financial Times, also urged the EU to prioritize sustainable aviation fuel (SAF) production and affordability. Jankovec noted,

“The price of conventional jet fuel is likely to remain at higher levels in the medium to long-term.”

He further warned that even without fuel shortages, smaller airports with fewer than a million annual passengers are already struggling with sustainability. The current crisis could exacerbate this, threatening local communities and European cohesion.

According to ACI Europe, air travel contributes €851bn annually to the EU’s GDP and supports 14 million jobs. Without swift action, the industry risks facing a deeper downturn, with potential ripple effects across the continent’s economy. The body is advocating for temporary measures such as relaxed import regulations and collective fuel purchases to mitigate the impact.