FT: European airports face possible jet fuel shortages

European airports face "systemic" jet fuel shortages if the Strait of Hormuz is not fully reopened within three weeks, the Airports Council International (ACI) has warned.

ACI Europe, which represents airports in the European Union, said that jet fuel reserves are dwindling, while "the impact of military activities on demand" is further straining supplies, the Financial Times (FT) reports.

In a letter seen by the FT, the organisation warned European Transport Commissioner Apostolos Tsitsikostas of “growing concerns from the airport industry about the availability of jet fuel, and the need for proactive EU oversight and action”.

"If passage through the Strait of Hormuz is not resumed in any meaningful and stable manner in the next three weeks, a systemic shortage of jet fuel will become a reality for the EU," the letter notes.

It added that the approach of the peak of the summer season, "when air traffic enables the functioning of the entire tourism ecosystem on which many (EU) economies rely," has further heightened these concerns.

Some Asian countries, such as Vietnam, have already started to rationalize jet fuel consumption due to shortages, but Europe has not yet experienced widespread shortages, even though fuel prices have doubled and airlines are warning of flight cancellations, the FT writes.

Despite US President Donald Trump announcing a two-week ceasefire in the war with Iran, global oil prices remained high.

The benchmark jet fuel price for northwest Europe closed at $1.573 per tonne on Thursday, according to price-tracking agency Argus Media, up from around $750 per tonne before the war with Iran.

European airlines say they should have enough fuel for a few weeks, but suppliers are unable to guarantee deliveries in May.

Four Italian airports imposed restrictions on the use of jet fuel last weekend after a disruption at a key supplier, although the shortage was not directly linked to the Strait of Hormuz, which is a transit route for about 40 percent of the world's jet fuel supply.

In the letter, ACI Europe called for EU-wide supply monitoring so that the industry can coordinate its response. “There is currently no mapping/assessment and monitoring of aviation fuel production and availability at EU level,” it said.

"A supply crisis would severely disrupt airport operations and air connectivity, with the risk of severe economic consequences for affected communities and for Europe in the event of a systemic shortage of jet fuel."

Airlines have already begun to reduce the number of flights as higher jet fuel prices have made some routes unprofitable.

Delta Air Lines said this week it would cut capacity by 3,5 percent, including some midweek and overnight flights, to cushion the blow of higher fuel prices. It expects additional fuel costs of $2 billion between April and June.

Air New Zealand has also cut some flights due to higher fuel costs, and Polish airline LOT is cutting some less popular routes and expects ticket prices to increase.