Asian airline leaders have stated that the stabilization of jet fuel prices will require several months, despite a recent ceasefire agreement involving Iran and the removal of certain geopolitical barriers. The temporary easing of tensions led to a decline in crude oil prices, which fell below US$100 a barrel; however, concerns about ongoing supply disruptions persist.
Nasaruddin Bakar, CEO of Malaysia Aviation Group, highlighted that it will take many months for prices to fully normalize, even if conflicts cease. Similarly, Chai Eamsiri, CEO of Thai Airways, indicated that this geopolitical crisis has caused the worst oil shock in his nearly forty-year career, with infrastructure damage playing a significant role in the ongoing supply issues.
Carriers worldwide are facing doubled jet fuel costs since the outbreak of conflict, prompting several airlines to reduce services and increase fares. Workforce and infrastructure damages, particularly in regions impacted by conflict, continue to challenge supply chains.
The situation underscores the importance of infrastructure restoration and demand management strategies to stabilise the fuel market. Industry experts warn that the timeline for price stabilization remains uncertain, with persistent supply concerns likely to influence airline operations in the near term.
