Airlines are facing jet fuel shortages as soon as next month that could force cancellations of long-haul flights at the end of the Easter holiday period, as the closure of the Strait of Hormuz continues to drain global reserves, The Times reported on Thursday.
Oil traders expect shortages to materialise within weeks as stockpiles run down and are not replaced, the newspaper reported. Vietnam has become the first country to warn of possible flight cancellations from April, after China and Thailand halted their own jet fuel exports to protect domestic supplies. Other countries are expected to follow in the coming days.
Industry experts warned that airlines could be forced to abandon some long-haul routes entirely because they may be unable to secure enough fuel for the return journey. Britain faces particular exposure if the conflict persists, as the majority of its imported jet fuel comes from Kuwait, Saudi Arabia and the United Arab Emirates.
Reuters reported that major European airlines are already warning passengers of rising fares if elevated fuel prices stemming from the Iran conflict persist for months, urging early bookings as the industry’s hedging strategies begin to unwind.
According to Reuters, Lufthansa Group CEO Carsten Spohr, speaking alongside other airline leaders in Brussels, said the group had added 40 flights to Asia to compensate for disruption to Gulf carriers, but warned that demand could be affected by higher fuel charges and fares if the situation continues.
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