Aviation leaders gather in Rio for the Iata AGM as the industry faces high jet fuel prices (over $140/barrel) despite no current shortage in Europe, with costs impacting airlines and potential for consolidation.
Europe is unlikely to face a jet fuel crisis in the coming weeks due to price hikes encouraging refiners to redirect fuel cargoes. However, concerns persist for early fall if the U.S.-Israeli war against Iran continues, impacting oil shipments.
Ryanair's CFO, Neil Sorahan, stated the budget airline is prepared for an "armageddon situation" due to the jet fuel crisis but does not anticipate it. The airline plans a full schedule for summer and winter, though some weaker carriers may struggle.
Jet fuel has doubled in price since the start of the war on Iran. How bad will the disruption get and could this accelerate the route to jet zero?What happens to flights if the world runs out of oil? Well, obviously they will be grounded. To be more specific, is it possible, if the war in Iran does not resolve and the strait of Hormuz remains blocked, that airlines will simply run out of aviation fuel?It’s not a question anyone has had to ask before. Air travel has hit some hurdles this century that nobody could have seen coming – Covid, of course, but also the Icelandic volcano in 2010, which closed much of European airspace for eight days, cost an estimated €3.75bn (£3.2bn) and caused untold supply chain chaos. There have been problems contained within a country or region – the Heathrow substation outage and the Iberian energy crisis, both last year, both closing airports – but since air travel began, it has never been globally impeded by a fuel shortage. Continue reading...
Europe faces a jet fuel crisis due to the war in Iran, with the Strait of Hormuz closed to shipping, causing prices to skyrocket. EU energy commissioner Dan Jorgensen has warned that many summer holidays will be affected by flight cancellations or expensive tickets. The International Energy Agency predicts major supply issues in the next five to six weeks, with Lufthansa Group already cancelling 20,000 flights. Passengers covered by UK or EU law are entitled to refunds or alternative flights if cancelled, and experts advise booking now to secure prices.
Europe's airlines and travelers face a turbulent summer as continued disruption to fuel shipments through the Strait of Hormuz drives up costs and raises shortage risks. The EU produces only 70% of its jet fuel needs, and any prolonged disruption could leave airlines scrambling for supply. Three scenarios range from a quick war resolution (still months to normalize) to continued disruption potentially causing fuel rationing.
WH Smith has issued a profit warning and suspended shareholder payouts as the travel-focused retailer grapples growing travel disruption caused by the Middle East crisis.
Airlines across Europe are cutting flights and raising fares as jet fuel shortages deepen, putting summer travel plans at risk Read Full Article at RT.com
