Global aviation fuel shortage leads to flight cancellations and higher fares

Global aviation fuel prices rose by 103% by the end of March compared to the previous month, according to the International Air Transport Association. The crisis is linked to the blockage of the Strait of Hormuz, which transports 41% of European aviation fuel. Fatih Birol, head of the International Energy Agency, warned that Europe could face severe supply shortages within weeks. Market analysts at Kpler reported that global jet fuel and kerosene shipments dropped to record lows below 2.3 million tons last week. In response, Lufthansa has canceled 20,000 short-haul flights to conserve 40,000 metric tons of fuel. Meanwhile, EasyJet reports a decline in forward bookings as passengers postpone travel plans due to rising costs. Before recent U.S. and Israeli airstrikes, jet fuel prices in Europe were $831 per ton in late February. The aviation industry faces ongoing challenges regarding travel accessibility and rising ticket costs for the summer season.