Skyward Squeeze: Airlines Grapple with Jet Fuel Shortage

Airlines in Asia are contending with reduced jet fuel supplies due to Middle East conflicts, prompting them to cut flights, carry extra fuel, and limit operations. The closure of the Strait of Hormuz has significantly decreased the global jet fuel supply. European and some African markets may also experience similar strain.

Airlines across Asia are grappling with jet fuel shortages as the Middle East conflict constrains supply. This pressure has forced carriers to cut flights and carry additional fuel from home bases, as they await a resolution to the disruption affecting the industry.

The closure of the Strait of Hormuz by Iran has effectively slashed 21% of the world's seaborne jet fuel supply, according to transport data. This has led European carriers to prepare for potential impacts, while governments and airlines globally assess options, such as rationing, to manage the situation.

Within Asia, countries like Vietnam, Myanmar, and Pakistan are feeling the impact keenly, with measures such as limiting fuel exports and capping fuel levels. Airlines are implementing various strategies, including refuelling stops and reducing capacities, as they navigate the challenges of ensuring operational viability amidst rising fuel costs.