The global aviation industry is facing significant turbulence following a dramatic surge in jet fuel prices. EasyJet has warned of a larger half-year pre-tax loss of between £540 million and £560 million due to these rising costs.
As of early Tuesday, EasyJet’s CEO, Kenton Jarvis, stated that the airline has visibility to the middle of May regarding fuel supplies. However, uncertainties remain about how this will affect flight schedules.
Within hours, Ryanair announced that its fuel suppliers can guarantee supply only until mid-end May. This raises concerns about potential disruptions for both airlines.
Jet fuel prices have skyrocketed from approximately $85 to $90 per barrel to between $150 and $200 per barrel. An energy chief has warned that Europe has around six weeks of jet fuel supply left.
Fatih Birol, head of the International Energy Agency, cautioned that flight cancellations could begin soon if the Strait of Hormuz remains closed. He emphasized that the crisis will affect Europe and the Americas.
Still, EasyJet’s CEO noted that pricing remains competitive despite the ongoing fuel crisis. But observers are wary about what happens next.
If the closure of the Hormuz Straits continues into May or June, Ryanair warned that risks to fuel supplies cannot be ruled out. Details remain unconfirmed.
The exact impact on flight schedules and passenger travel plans remains unclear. Airlines are bracing for potential challenges in maintaining operations amid these rising costs.
