Jet fuel crunch threatens summer flights in Europe, industry warns

Disruptions to jet fuel supplies could soon lead to noticeable cuts in flight offerings, a leading German association warned on Friday, as tensions in the Middle East strain global energy markets.

"The summer travel season is just around the corner, and the tourism ecosystem depends on air travel for incoming and outgoing tourists during the peak travel and business season," warned Joachim Lang, director general of the German Aviation Association (BDL).

Whether and when the situation deteriorates will largely depend on the duration of the conflict involving Iran, the association said. Even if the war ends quickly, energy markets are expected to recover only gradually.

Citing energy experts, the group said more than 80 facilities in the Middle East have been partially or severely damaged, making a rapid return to pre-crisis production levels unlikely. The oil industry expects around 20% of global oil capacity to remain unavailable for an extended period.

The International Energy Agency said on Thursday that parts of Europe could face jet fuel shortages within the next six weeks due to disruptions in the Strait of Hormuz. Around 75% of Europe's net jet fuel imports come from the Middle East.

The BDL said replacement supplies are currently coming primarily from the United States, but these have so far covered only about half of the shortfall, raising the risk of low inventories and a tight market extending beyond the summer.

Airlines adjust capacity

Airlines have already started responding to the situation. Carriers such as KLM and SAS have removed unprofitable routes from their schedules.

The Lufthansa Group has grounded 27 aircraft from its regional subsidiary Lufthansa CityLine and plans to retire additional fuel-intensive planes from its fleet starting with the winter schedule at the end of October.

As potential countermeasures, the German association called for closer government monitoring of available jet fuel supplies and the release of national and European reserves.

It also suggested granting additional access rights to the NATO pipeline network to improve supply to German airports in Frankfurt, Munich, Cologne and Zurich.

The industry is also seeking tax and levy relief during the crisis. One proposal could shift the burden onto passengers, with the BDL arguing that flight cancellations or delays caused by fuel shortages should be classified as "extraordinary circumstances," exempting airlines from compensation obligations under EU passenger rights rules.