A worsening jet fuel shortage is sending shockwaves through the global aviation industry, with airlines, airports and fuel suppliers scrambling to manage costs as prices reach record highs and supplies run dangerously low.
At the heart of the crisis is the closure of the Strait of Hormuz, a critical chokepoint linking the Persian Gulf to global markets.
The Gulf accounts for roughly half of Europe's aviation fuel imports, and with the strait's closure disrupting supply chains, the consequences are mounting. European jet fuel prices hit an all-time high of $1,838 per tonne last week, more than double the $831 recorded before the start of the war.
Airports Council International (ACI) Europe is sounding the alarm, warning that systemic shortages could become a reality around the EU within weeks if the passage does not reopen in a significant and stable way.
Smaller airports are especially vulnerable, with ACI Europe's director-general cautioning that a supply crunch could severely disrupt air connectivity and deliver harsh economic consequences.
The crisis is not confined to Europe. China has halted jet fuel exports to prioritize domestic demand, and airports across Asia, including in Vietnam and Myanmar, are already running dry.
The recent cease-fire deal has done little to reassure the industry, with suppliers and carriers warning it won't resolve the underlying shortage anytime soon.
Airlines are taking matters into their own hands.
United Airlines has cut red-eye and midweek flights, while Air France is levying additional charges on business class passengers. Korean Air declared a corporate emergency, suspending nonessential staff travel. Major U.S. carriers, including JetBlue, Delta, American, Alaska, Hawaiian and Southwest have all raised checked baggage fees in recent weeks.
The strain is showing up in official data as well. The U.S. Bureau of Labor Statistics reported on April 10 that the airline fares index rose 2.7 percent in March, following a 1.4 percent increase in February. Currently, airfares in March were 14.9% higher than the previous year.
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