Brussels: Airports Council International (ACI) Europe has issued a warning that Europe could face significant jet fuel shortages if the Strait of Hormuz remains closed over the next three weeks.
According to Emirates News Agency, the Gulf region serves as a critical supply line for aviation fuel, contributing approximately 50% of Europe's jet fuel imports.
ACI Europe has expressed "increasing concerns" over the availability of jet fuel, especially as the summer tourism season approaches. Smaller airports are highlighted as particularly at risk. Olivier Jankovec, ACI Europe's Director-General, communicated these concerns in a letter addressed to the European commissioners for energy and tourism, emphasizing the potential for severe disruptions to airport operations and air connectivity, which could lead to harsh economic impacts across Europe.
Jankovec stated that without significant and stable resumption of passage through the Strait of Hormuz within the next three weeks, a systemic jet fuel shortage is likely to occur in the EU. In response to these concerns, several airlines globally have already reduced flight schedules and increased passenger fees due to the looming threat of fuel shortages. The situation has been exacerbated by the recent surge in the benchmark European jet fuel price, reaching an unprecedented $1,838 per tonne, a significant increase from the $831 per tonne before the conflict began.
ACI Europe is urging the EU to take proactive measures, suggesting that relying solely on market forces is insufficient. The organization is advocating for the EU to engage in collective purchasing of jet fuel and to temporarily lift restrictions and regulations on jet fuel imports. Furthermore, ACI Europe sees this crisis as an opportunity to bolster support for the production and affordability of sustainable aviation fuel (SAF), given the expectation of sustained high prices for conventional jet fuel.
Jankovec also highlighted the vulnerability of airports handling fewer than a million passengers annually, noting that they are already facing challenges in maintaining viability, even before considering the potential impact of jet fuel shortages. Air travel is a significant economic contributor, adding £741 billion to European economies' GDP each year and supporting 14 million jobs.
