The global aviation industry is facing a challenging situation due to a severe shortage of aviation fuel, caused by the escalation of hostilities between the US, Israel, and Iran, as well as the partial closure of the Strait of Hormuz. These events have led to the withdrawal of about 20% of global oil supplies from the market, resulting in a sharp increase in fuel prices for aircraft and forcing companies to reconsider their business strategies.
This is reported by Finway
Actions of Leading European Carriers
The largest players in the aviation market are compelled to respond quickly to the crisis. One of the first to announce flight reductions was the German airline group Lufthansa, which has decided to temporarily ground up to 27 aircraft. Similar measures are being taken by the national carrier of the Netherlands, KLM, which will soon cancel about 160 flights from Amsterdam’s Schiphol Airport to reduce costs on expensive fuel.
The situation in countries with less developed economies is even more acute. In Nigeria, for instance, local airlines have reported a real threat of complete flight cessation, as the price of aviation fuel has risen by 270% since the end of February. Representatives of Nigerian carriers officially emphasize:
“Currently, the revenues of airlines are insufficient to cover even the cost of fuel.”
European Union Strategy and Consequences for Passengers
The European Union has also entered a risk zone, as up to 75% of the EU’s aviation fuel needs are met through imports from the Middle East. In response to the crisis, Brussels is developing urgent measures — maximizing the utilization of its own refineries and increasing fuel imports from the US to record levels. However, for passengers, this already means a significant increase in air ticket prices, and in the event of further escalation of the situation, new route reductions and flight cancellations worldwide cannot be ruled out.