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

EU Airline Industry Warns of Fuel Crisis If Hormuz Remains Closed

The European Union faces a looming threat of jet fuel shortages within three weeks if the Strait of Hormuz remains shut, according to the European airports trade group. The Persian Gulf serves as a critical supplier of aviation fuel, providing approximately 50% of the continent’s fuel imports. As the summer travel season approaches, ACI Europe has raised alarms about the growing risk to fuel availability, highlighting the vulnerability of smaller airports.

ACI Europe’s director-general, Olivier Jankovec, emphasized in a letter dated 9 April that without a significant and stable reopening of the Strait of Hormuz, a systemic shortage could disrupt operations across the EU. He wrote:

“A supply crunch would severely disrupt airport operations and air connectivity – with the risk of harsh economic impacts for the communities affected, and for Europe.”

The letter, initially reported by the Financial Times, also called for urgent EU action to address the crisis.

Global airlines have already begun adjusting schedules and raising fares in response to fears of fuel scarcity. Last week, the European benchmark jet fuel price surged to a record high of $1,838 per tonne, compared to $831 before the conflict began. Jankovec argued that market forces alone cannot resolve the issue, urging the EU to take decisive steps. He criticized the absence of a unified assessment system for monitoring fuel production and availability.

ACI Europe proposed collective fuel purchasing as a solution, alongside temporary relaxation of import regulations. The body also stressed the need to bolster sustainable aviation fuel (SAF) initiatives, stating:

“This crisis should also be the opportunity to reinforce support for SAF production and affordability.”

Jankovec warned that conventional fuel prices are expected to stay elevated in the medium to long term.

Smaller airports, which serve fewer than a million passengers annually, are already struggling with financial sustainability. Without accounting for fuel shortages, these facilities face heightened risks of closure. The ongoing crisis could further destabilize the sector, threatening local communities and potentially undermining European unity. Air travel contributes €851bn to the EU’s GDP and supports 14 million jobs annually, underscoring its economic importance.