Airlines face lasting fuel pressure as Virgin Atlantic warns on costs

Tuesday 14 April 2026 - 11:00

By: Dakir Madiha

Airlines face lasting fuel pressure as Virgin Atlantic warns on costs

The global aviation sector is confronting sustained disruption as jet fuel prices surge and supply tightens, with Corneel Koster warning that elevated fuel costs are likely to persist.

The crisis follows the closure of the Strait of Hormuz, which has cut off roughly one fifth of global oil flows. Six weeks into the disruption, airlines are scaling back flights, raising fares, and competing for limited fuel supplies.

Jet fuel prices have more than doubled since late February, when military escalation involving the United States and Israel targeted Iran. In northwest Europe, kerosene prices reached a record $1,840 per metric tonne in early April. Industry groups now warn the الأزمة extends beyond price shocks into a physical supply shortage.

Airports Council International Europe told the European Commission that without a stable reopening of Hormuz transit within weeks, a systemic fuel shortage could emerge across the European Union. Director General Olivier Jankovec cautioned that market adjustments alone will not resolve the situation.

Efforts to ease tensions have stalled. High-level talks between the United States and Iran in Islamabad ended without agreement, leaving key disputes unresolved. While a small number of tankers resumed transit on April 11, hundreds of vessels remain stranded in the Gulf.

Airlines are adjusting operations to manage rising costs and limited supply. Qantas plans to cut domestic capacity by 5 percent between mid-May and late June, citing an expected fuel cost increase of up to 800 million Australian dollars. Its subsidiary Jetstar has suspended a seasonal route.

Koster said Virgin Atlantic has hedged about 70 percent of its fuel needs through June, but acknowledged that hedging does not protect against physical shortages. Across the sector, United Airlines has reduced scheduled routes, SAS has canceled nearly 1,000 flights, and Lufthansa is preparing to ground aircraft if shortages persist. Major Gulf hubs in Dubai, Doha, and Abu Dhabi continue to face cascading disruptions.

Industry leaders see no quick resolution. Willie Walsh of International Air Transport Association said supply recovery would take months even if Hormuz reopens, citing damage to refining capacity in the Middle East. Data from S&P Global shows global refining capacity has fallen by up to 12 percent due to shutdowns in conflict zones.

The International Energy Agency warned that Europe could face jet fuel shortages by early May, just as peak summer travel demand begins, raising the risk of widespread disruption to holiday travel.