FRANKFURT – Lufthansa has warned of potential physical shortages of jet fuel in Europe amid the ongoing Iran war.
Lufthansa Technology board member Grazia Vittadini told Welt am Sonntag that fuel availability is already difficult at some Asian airports. She added that the longer the Strait of Hormuz remains blocked, the more critical the jet fuel supply security could become.
Lufthansa CEO Carsten Spohr outlined a two-stage crisis plan to employees last week. Asian airports, facing persistent shortages, could reject both requested and scheduled Lufthansa flights. In extreme cases, supply gaps could emerge in Europe as well.
The airline plans to respond swiftly by cutting unprofitable routes or retiring older aircraft early, potentially idling 20 to 40 planes.
The blockade has driven jet fuel prices up by over 100 percent in some areas, with Lufthansa Group airlines only partially hedged. Passenger airlines have 80 percent of their fuel needs secured for the year, though rising prices still impact operations. Airlines are passing costs to passengers via surcharges, such as an additional 258 euros on some New York round-trips.
Asian carriers like AirAsia X are taking extra fuel on board before landing in restricted areas such as Vietnam, Myanmar, Pakistan, and Tahiti, a costly practice known as tankering that increases consumption.