War in Iran threatens to ground European airlines

European airlines have called on the European Union to intervene with urgent measures to mitigate the consequences of a war with Iran, including widespread airspace closures and growing concerns about jet fuel shortages, a document seen by Reuters shows.

Industry group Airlines for Europe (A4E) has called on the EU to introduce a series of crisis measures, including monitoring jet fuel stocks at Union level, temporarily suspending the European aviation carbon market and abolishing certain aviation taxes, the document said.

The aviation sector has been hit by airspace closures since the US-Israeli war against Iran began on February 28, and the European Union's Aviation Safety Agency has banned European airlines from flying through the airspace of several Gulf countries, including the United Arab Emirates and Qatar, until April 24.

The sector is also facing a potential jet fuel shortage following the closure of the Strait of Hormuz. Last week, industry group Airports Council International Europe (ACI) warned that Europe could face a systemic jet fuel shortage within three weeks.

In the document, A4E calls on Brussels to consider joint procurement of kerosene at the EU level, which is one type of aviation fuel.

The European Commission said yesterday that there is currently no shortage of jet fuel in the EU, but that supply problems could arise and that the situation remains a cause for great concern. "There is currently no evidence of fuel shortages in the European Union, but supply problems could arise in the near future," a Commission spokesman told reporters in Brussels.

"The supply of crude oil to European refineries remains stable and there is no need for additional stock releases for the time being. However, this remains our main concern," the spokesman added.

The EU introduced joint purchasing of natural gas to try to bolster supplies after Russia drastically reduced gas deliveries to Europe in 2022. However, the model has not yet been applied to oil or kerosene.

A4E, whose members include Lufthansa, Air France-KLM and easyJet, also called on the EU to amend the legal obligation under which countries must maintain 90 days of emergency oil reserves, as this currently does not include a specific requirement relating to jet fuel.

The war has disrupted routes between Asia and Europe that relied on Gulf hubs, while doubling jet fuel prices and increasingly tight supplies are hitting airlines hard. Since the US-Israeli strikes on Iran began on February 28, airlines have raised fares, imposed fuel surcharges and cancelled some routes.