Jet fuel shortages loom, but widespread flight cancellations provide some breathing room
Jet fuel prices have surged due to Iran's closure of the Strait of Hormuz, leading to concerns about supply shortages. However, airlines are cutting flights and reducing consumption, which is alleviating some pressure on the market. The International Energy Agency has pushed back its predictions for European shortages to late June or July.
- ▪Jet fuel prices have doubled since the start of the U.S.-Israeli war on Iran.
- ▪Airlines like KLM and Air Canada are reducing schedules in response to rising fuel costs.
- ▪The global supply of jet fuel is currently at 88 percent of prewar levels, while airline schedules are at 82 percent.
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Open this photo in gallery:Delta Airlines passengers check in for flights at Los Angeles International Airport on Wednesday. Air Canada and KLM are among a number of airlines that have cancelled flights as jet fuel prices have shot up.Justin Sullivan/Getty ImagesShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountIran’s shutdown of the Strait of Hormuz has sent jet fuel prices soaring as supplies fall. But one trend is mitigating fears of shortages: Jet fuel demand is falling even faster. That’s because airlines – especially in Europe and Asia – are cutting flights and reducing consumption in the face of rising fuel costs.
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