(April 10): Europe faces a systemic jet-fuel shortage in three weeks’ time if the Strait of Hormuz remains restricted until then, a regional airport trade association warns.
A fuel crunch would trigger severe disruptions to airports and airlines, significantly hurting the continent’s economy, ACI Europe wrote in a letter on Thursday to two European Union commissioners.
“If the passage through the Strait of Hormuz does not resume in any significant and stable way within the next three weeks, systemic jet fuel shortage is set to become a reality for the EU,” the group said in the letter obtained by Bloomberg News.
The Iran war is slamming the global aviation industry through higher oil prices, closed airspaces and restricted flight routes. Many airlines have responded by raising fuel surcharge fees and adding levies on baggage.
The closing of the Strait of Hormuz during the conflict put pressure on oil markets, pushing prices above US$100 a barrel. While the recent ceasefire between the US and Iran is positive news, jet fuel and ticket prices will remain elevated for some time, Willie Walsh, director-general of the International Air Transport Association, said earlier this week.
The concerns are growing around jet-fuel supplies because airlines are entering the peak summer travel season, ACI Europe warned EU Energy and Housing Commissioner Dan Jorgensen and EU Transport Commissioner Apostolos Tzitzikostas.
See also: France to expand munitions stocks in €36 billion defence boost
In recent days, seven Italian airports restricted access to jet fuel because of shortages. Other nations, including China, have taken measures to safeguard local supplies.
ACI Europe called on the bloc to monitor and assess production and availability during the next six months.
“This crisis has exposed the reduced refining capacity of the EU for jet fuel production, and its acute dependence on imports from other world regions,” the group said.
Uploaded by Evelyn Chan
