Stock image of a British Airways plane taking off from London Heathrow Airport.
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Europe may only have six weeks of jet fuel left, with serious implications for the continent’s economy, the International Energy Agency warned on Thursday.
“Several European countries could begin to face jet fuel shortages over the next six weeks, depending on how much they can import from international markets to compensate for the loss of supply from the Middle East, which previously accounted for 75% of Europe’s net jet fuel imports,” the IEA told CNBC in an emailed statement.
Earlier, IEA Director-General Fatih Birol said in an interview with The Associated Press on Thursday that the closure of the Strait of Hormuz would result in “the biggest energy crisis we have ever faced.”
He said the broader economic impact included “higher petrol (petrol) prices, higher gas prices and higher electricity prices,” adding that some regions of the world were “hit harder than others.”
Mr Birol had previously warned that the energy crisis would hit even harder in April as oil supply constraints worsened.
“There will be nothing in April,” Birol said last month. “Oil losses in April will be double the oil losses in March. On top of that, you have things like LNG. I think that will have a ripple effect on inflation and will hurt economic growth in many countries, especially in emerging countries. We may soon see energy rationing in many countries.”
“Hard economic impact”
Analysts echoed similar warnings to CNBC earlier this week, with Rystad Energy chief economist Claudio Galimberti telling CNBC’s Ritika Gupta on CNBC’s “Early Edition” on Tuesday that the situation airlines face “will largely depend on the number of barrels that come through the Straits.”
“We’re seeing these ships grounded now, so we’re running out of supplies from the Middle East and we need replacements,” ING senior economist Rico Luhmann told CNBC’s “Squawk Box Europe” on Tuesday.
According to ACI Europe, air travel generates €851 billion (approximately $1 trillion) in gross domestic product for the European economy each year and supports 14 million jobs.
European airline easyJet said on Thursday it was buying 2% fewer tickets at the end of the year compared to 2025, as conflict in the Middle East and rising fuel costs weighed on customer bookings.
Meanwhile, the low-cost airline said it incurred around 25 million pounds ($34 million) in extra fuel costs in March alone and had hedged at least 70% of its summer fuel to protect against volatility.
ACI Europe, which represents airports across the European Union, said last week that peak summer travel would be disrupted and there would be a “severe economic impact” on some member states dependent on the economic boost.
