European Airports Warn of Imminent Jet Fuel Shortage

A European airport industry group has warned that a continued restriction of fuel shipments through the Strait of Hormuz could lead to a systemic jet fuel shortage in the European Union within three weeks. The warning comes as the region enters its peak summer travel season and as initial supply pressures have already led to fuel access restrictions at some airports.

The Warning

ACI Europe, the region's airport industry group, communicated the assessment in a letter to European Union officials and in statements to Bloomberg News.

"If significant and stable passage through the Strait of Hormuz does not resume within the next three weeks, a systemic jet fuel shortage is set to become a reality for the EU."

The group warned that such a shortage would affect airports and airlines at the start of the peak summer travel season and would impact the broader aviation system and economic activity across the bloc.

Background and Current Pressure

Europe's jet fuel supply is heavily reliant on imports, with approximately 30% of its imports typically originating from the Gulf area. The continent has limited domestic refining capacity dedicated to jet fuel production. ACI Europe stated the current situation has exposed this dependency.

Initial signs of supply pressure are already evident. In recent days, seven airports in Italy have restricted access to jet fuel as supplies have tightened.

Market Context

Jet fuel prices typically move in correlation with crude oil prices. Following the disruption in the Strait of Hormuz, oil prices rose above $100 per barrel, increasing costs for airlines. According to the reports, Brent crude was trading near $96 per barrel as of the referenced Friday.

In response to higher costs, some carriers have begun implementing fuel surcharges and additional fees for customers.

Industry and Regulatory Response

Airlines are preparing for increased summer demand, a period when fuel consumption typically peaks. In light of the potential shortage, ACI Europe has formally requested that the European Commission monitor jet fuel supply and production levels across the EU over the next six months.