Europe is facing a critical shortage of jet fuel, with only about six weeks’ worth of supply left due to the ongoing tensions in the Middle East. The International Energy Agency (IEA) Executive Director, Fatih Birol, has raised concerns about potential flight cancellations if oil supplies continue to be restricted by the conflict in the region. Birol emphasized that the situation could lead to the “largest energy crisis” ever experienced, as Iran’s control over tankers in the vital Strait of Hormuz is affecting global energy supplies.
Countries like Japan, India, and China, which heavily rely on Middle Eastern energy sources, are particularly vulnerable to the repercussions of the fuel shortage. Birol warned that the pressure on energy supplies could soon extend to Europe and the Americas, impacting flight operations worldwide.
Several airlines have already started taking action in response to the fuel crisis. Swedish airline SAS announced the cancellation of 1,000 flights in April due to soaring oil and jet fuel prices. United Airlines and KLM have also cut back on flight schedules, with United planning to cancel five percent of flights in the coming quarters and KLM already axing 160 flights for the next month.
Other airlines, including Asiana, Cathay Pacific, and Lufthansa, are adjusting their operations in light of the fuel cost increase. Asiana will reduce 22 flights between April and July, while Cathay Pacific will ground around 2% of its passenger flights and its budget subsidiary, HK Express, will cut approximately 6% of flights. Lufthansa has decided to ground 27 planes earlier than scheduled, attributing the move to high jet fuel prices.
The impact of the fuel shortage is also affecting airlines outside of Europe. Vietnam Airlines plans to cancel 23 weekly flights on domestic routes starting in April, and Air New Zealand is scaling back its flight operations for the next two months, affecting around 1,100 flights. Norse Atlantic Airways has removed all flights to Los Angeles from its summer schedule due to the fuel shortage.
While major airlines like British Airways, Ryanair, and easyJet have warned about potential ticket price hikes and schedule disruptions, they have not yet canceled flights directly due to the fuel crisis. However, British Airways has stopped its London Heathrow to Jeddah route, citing a shift in demand as the reason.
Despite the challenges posed by the fuel shortage, easyJet reassured passengers that all airports it serves are operating normally. The airline acknowledged the impact of the Middle East conflict on its finances, estimating a significant increase in jet fuel costs last month. This has led to projected losses of between £540 million and £560 million for the six months ending in March.
The uncertainty surrounding fuel costs and customer demand has resulted in a drop in bookings for easyJet, with a two percentage point decrease for the periods ending in June and September compared to the previous year. The airline’s announcement of larger-than-expected losses in the first half of the year caused a decline in its stock value, with shares falling by up to 9% during early Thursday trading before stabilizing around a 4% decrease.
