economy
A 'systemic' jet fuel shortage is brewing in Europe
'We've seen constraints in countries like Vietnam and Thailand on air travel, but this is also spilling over to Europe,' an ING analyst told CNBC.
TL;DR
- A blockade of the Strait of Hormuz is threatening a systemic jet fuel shortage in Europe within weeks.
- Experts predict severe flight cuts in May and June if the situation persists.
- The disruption could have harsh economic impacts on Europe's travel season, which contributes significantly to GDP and jobs.
- Jet fuel prices have surged, with some airlines already cancelling flights and increasing ticket prices.
- Airlines like SAS and Ryanair are considering flight cancellations and capacity reductions, while others are already adding surcharges and revising profit expectations.