EU fears jet fuel supply issues in 'near future'
Airports lobby has warned EU of risk of "systemic" jet fuel shortages if maritime traffic is not restored
The European Commission said Tuesday it fears Europe could face jet fuel supply issues "in the near future" with no end in sight to the Iran war roiling global energy markets.
"There is no evidence for fuel shortages in the European Union at present, but supply issues could occur in the near future in particular for jet fuels," said spokeswoman Anna-Kaisa Itkonen.
"That remains our primary concern," she told reporters.
The airports lobby ACI Europe has warned the commission of a risk of "systemic" jet fuel shortages if maritime traffic is not restored in the Strait of Hormuz by the end of April.
Around a fifth of the world's jet fuel normally transits through the strategic waterway, which has been blocked by Iran since late February in response to Israeli-American air strikes.
The conflict has sent jet fuel prices soaring, even more sharply than oil prices.
Airlines have trimmed routes and costs as fuel bills explode and wary clients think twice about travel plans, a situation that could persist even if a fragile truce holds in the Middle East.
Ryanair has urged passengers to book holidays and flights “as soon as possible” to ensure they are “insulated from inevitable airfare and accommodation cost increases” expected due to the Iran war.
Global oil and gas supplies have been disrupted, as shipments through the critical Strait of Hormuz waterway have mostly been halted since the Iran war began on February 28. The price hikes are expected to impact the cost of travel.
Earlier this month Europe's biggest airline, Ryanair - a main carrier for Malta - warned that jet fuel supplies could be at risk if the Iran war continues for another month.
"We don't expect any disruption until early May, but if the war continues, we do run the risk of supply disruptions in Europe in May and June," he said.
He added that 10% to 25% of Ryanair's supplies could be at risk through May and June. "So like everyone else in this industry, we hope the war ends sooner rather than later."