Four major UK airlines have confirmed they will not cancel flights due to jet fuel shortages this summer, while three others have yet to respond. The Labour Party government has stated that there are currently no jet fuel shortages.
Government and FCDO Statements
On the Foreign, Commonwealth & Development Office (FCDO) jet fuel advice page, it states: "UK airlines are clear that they are not currently seeing a shortage of jet fuel. It is typically bought in advance, with airports and their suppliers keeping stocks of bunkered fuel to support their resilience."
Money Saving Expert Survey
Money Saving Expert (MSE), founded by Martin Lewis, surveyed the UK's seven largest airlines regarding potential cancellations due to fuel shortages. Easyjet, Jet2, TUI, and Virgin Atlantic all responded "no" to any planned cancellations. However, MSE noted: "We're still awaiting responses from BA, Ryanair and Wizz Air."
MSE added: "When we spoke to major airlines, Easyjet, Jet2, TUI and Virgin Atlantic said they have no current plans to increase prices retrospectively. We're still waiting to hear from BA, Ryanair and Wizz Air."
Potential Regulatory Changes
According to reports, airlines may receive permission to use a type of fuel currently only used in America. Additionally, rules on flight schedules are expected to be relaxed to prevent last-minute cancellations that could disrupt summer holidays.
Global Jet Fuel Supply Concerns
The loss of Middle Eastern jet fuel due to the Iran war is becoming an acute logistics problem for Europe, according to analysts at Societe Generale. The continent's average daily demand of about 1.6 million barrels of jet fuel is typically met primarily through domestic production of 1.1 million barrels per day.
Benedict George, head of European product pricing at Argus, said: "While we can import more, and we are, from the U.S. and Nigeria, we have to fight for every cargo that’s going to come." He told CNBC's "Squawk Box Europe" on Monday: "We have to fight against Singapore, against Australia — and the price...just goes higher and higher."
