Overview
- EasyJet, which issued a trading update Thursday, forecast a £540m–£560m first‑half loss after a £25m jump in March fuel costs and said the conflict has created near‑term uncertainty for demand.
- Airports Council International Europe warned the region could face a systemic jet‑fuel shortage within weeks because the Strait of Hormuz closure has choked Middle East supplies.
- EasyJet and Ryanair said fuel suppliers can only guarantee deliveries to about mid‑May, in line with the sector’s typical three to four weeks of visibility, while IEA chief Fatih Birol cautioned Europe may have roughly six weeks of jet fuel left.
- Airlines are moving to pass on costs, with Spain’s Volotea invoking a new “Fuel Cost Adjustment” clause and Virgin Atlantic lifting surcharges on tickets as jet‑fuel prices surge.
- Europe relies on imports for roughly 500,000 barrels a day of jet fuel, about three‑quarters of which usually come from the Middle East, forcing longer‑haul sourcing from the U.S., shrinking stocks at the ARA hub, and raising costs and timing risks.