Jet‑fuel squeeze hits airlines

Airlines are cutting flights as jet fuel gets scarcer and more expensive, with industry groups warning shortages are already disrupting parts of Asia. (iata.org) The International Air Transport Association said on April 17 that Europe could start seeing cancellations by the end of May for lack of jet fuel. Its director general, Willie Walsh, said carriers and authorities need plans for possible rationing and slot relief. (iata.org) The squeeze follows a Middle East conflict that IATA says escalated on February 28, 2026 and severely disrupted energy flows. IATA said tanker traffic through the Strait of Hormuz collapsed by 70% to 80%, hitting supplies of refined products including jet fuel. (iata.org) Jet fuel is not just crude oil in another form. Airlines need a specific refined product, and IATA says jet fuel makes up only 9% of global refined output, leaving it a lower priority for refineries than diesel and gasoline. (iata.org) That helps explain the price shock. IATA’s latest monitor put the global average jet fuel price at $197.83 a barrel last week, while Business Insider reported spot prices reached about $195 at the end of March, up nearly $100 from late February. (iata.org) (businessinsider.com) Airlines are responding by trimming schedules rather than waiting for tanks to run dry. United said in March it would cut about 5% of scheduled flights and 3% of off-peak flying in the second and third quarters, starting with red-eyes and weaker travel days. (businessinsider.com) United Chief Executive Scott Kirby said fuel at those levels would add $11 billion in annual expense, more than double the company’s best-ever profit. The carrier said it still expects to restore its full schedule by fall 2026. (businessinsider.com) In Europe, Ryanair said it was considering route cuts, and Lufthansa was preparing crisis plans that could ground as many as 40 aircraft if the disruption continued. Michael O’Leary told Sky News he did not expect supply disruption until early May, but said the risk for Europe in May and June was real. (businessinsider.com) The pressure is uneven because storage is limited. IATA said Europe relies heavily on commercial inventories equal to a little more than one month of demand, and alternative suppliers in India and China face their own constraints. (iata.org) The fuel shock is also colliding with aviation’s longer-term technology plans. IATA says sustainable aviation fuel is projected to cover just 0.8% of total fuel consumption in 2026, leaving airlines overwhelmingly dependent on conventional jet fuel when supply chains seize up. (iata.org) For now, the fastest fix is not a new engine or a new aircraft. It is enough jet fuel, in the right place, at a price airlines can absorb without pulling more flights from the schedule. (iata.org)