Aviation fuel prices have more than tripled due to the conflict in the Middle East, and the closure of the Strait of Hormuz has come as a bigger shock to the aviation industry than the pandemic of 2020, AirAsia CEO Tony Fernandes said in an interview with the Financial Times.
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“I thought I had seen everything during COVID-19, but when jet fuel almost tripled in price, it got much worse,” the newspaper quoted Fernandez as saying.
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A large proportion of the aviation industry’s expenses are related specifically to jet fuel, the shortage of which airlines are feeling especially acutely as a result of the closure of the Strait of Hormuz since the beginning of March.
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The newspaper clarifies that the closure of this most important global trade artery led to disruptions in oil supplies, which caused prices for black gold to soar from $ 85 per barrel to more than $ 200 at the end of February. This came as a shock to the aviation industry, as a result, a number of companies around the world are raising ticket prices and reducing the number of flights.
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At the same time, there are air carriers that not only reduce the number of flights, but even stop working. For example, American Spirit Airlines canceled all flights and announced a shutdown. The company failed to reach an agreement with the White House on an emergency package.
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In April, the head of the International Energy Agency (IEA), Fatih Birol, announced the threat of a shortage of diesel fuel and jet fuel in Europe. And William Walsh, Director General of the International Air Transport Association (IATA), predicted that flight cancellations could begin in Europe by the end of May due to a shortage of jet fuel, as is already happening in some Asian countries.
Due to the escalation in the Middle East, shipping through the Strait of Hormuz, which accounts for about 20% of global supplies of oil, petroleum products and LNG, has practically stopped.
