Overview
- Europe's jet fuel stocks are down to roughly six weeks, with the IEA and Airports Council International warning a region-wide shortage could hit within weeks if flows through the Strait of Hormuz do not resume.
- Airlines have started cutting capacity, with United paring about 5% of its schedule over the next six months and carriers such as SAS, KLM and Cathay Pacific canceling flights.
- Jet2 says flights are planned to operate as normal and easyJet says it sees fuel availability for about three to four weeks, yet both flag limited visibility beyond mid-May.
- Travelers are already paying more as fares rise and some carriers add fuel surcharges and extra fees, and US flyers face higher prices even though the country is unlikely to run short.
- Even if Hormuz reopens, analysts including Kpler’s Matt Smith say supplies will not normalize until at least July because tankers need weeks to move and refineries need time to restart.