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

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

The European aviation sector faces potential jet fuel shortages within three weeks if the Strait of Hormuz remains blocked, according to the continent’s airport trade body. The Persian Gulf supplies roughly half of Europe’s aviation fuel, making its closure a significant threat to the industry.

ACI Europe has raised alarms about the risks to fuel availability, especially as the summer travel season approaches. The organization emphasized that smaller airports are particularly vulnerable to supply disruptions, which could jeopardize their operational stability.

“A supply crunch would severely disrupt airport operations and air connectivity, risking harsh economic impacts on affected communities and the broader EU,” stated Olivier Jankovec, ACI Europe’s director-general, in a letter to European commissioners for energy and tourism.

Recent data shows that the benchmark European jet fuel price reached an unprecedented high of $1,838 per tonne last week, up from $831 before the war began. Airlines globally have already adjusted schedules and increased passenger fees due to fears of prolonged shortages.

Jankovec urged the EU to take decisive action, arguing that relying solely on market forces is insufficient. He criticized the lack of a unified assessment and oversight of fuel production and distribution. ACI Europe proposed collective fuel purchases and temporary removal of import restrictions to stabilize supply chains.

The letter, dated 9 April and first reported by the Financial Times, also called for reinforcing support for sustainable aviation fuel (SAF) production. Jankovec warned that conventional fuel prices are expected to remain elevated in the medium to long term.

Smaller airports, serving fewer than a million passengers annually, are already struggling with viability. Without addressing fuel shortages, these facilities could face even greater challenges, threatening local communities and European cohesion. Air travel contributes €851bn to the EU’s GDP each year, supporting 14 million jobs across the region.