Global aviation is facing significant disruptions as a supply shortage of jet fuel exacerbates amid ongoing geopolitical tensions, particularly involving the US, Israel, and Iran. This crisis has caused airlines across Europe and internationally to cancel flights, increase fares, and implement operational restrictions.
Several European airports, including Milan Linate, Bologna, Venice, and Treviso, have introduced jet fuel restrictions, prioritizing emergency and long-haul flights while limiting short-haul operations. Industry experts estimate that approximately 10 million barrels of oil per day have been removed from global markets, intensifying the shortage.
Impact on Airlines and Operations
Major carriers such as Air France-KLM, Cathay Pacific, Thai Airways, SAS, and United Airlines have responded by raising fuel surcharges and cutting routes. Cathay Pacific increased fuel surcharges by 34%, and Thai Airways plans fare hikes of 10-15%. SAS expects to cancel around 1,000 flights in April, while AirAsia X announced a 20% rise in fuel surcharges and possible route cuts.
"If the disruption persists, the aviation sector could face deeper cuts, higher fares, and widespread cancellations, especially with the upcoming busy summer travel season," said industry analysts.
The financial impact is profound, with United Airlines suggesting that fuel prices could add over $11 billion annually—more than double its previous highest profit. Regional airlines and national carriers are already scaling back operations to manage rising costs.
Industry forecasts warn that further oil supply disruptions are likely in the coming weeks, potentially affecting regions from Asia to Europe by April or May. The limited buffers within inventories highlight the severity of the situation, with prolonged shortages threatening to cause more cancellations and fare increases during peak travel months.
