Jet Fuel Crisis, EU Asks Airlines to Be Ready for All Scenarios

JAKARTA - The European Union (EU) has asked airlines and its member states to prepare for all possibilities amid the jet fuel crisis that is unclear when it will end.

According to a report by Anadolu Agency quoted on Tuesday, May 5, the warning was delivered by European Commission spokesperson Anna-Kaisa Itkonen at a daily press conference in Brussels, Monday.

"I think no one knows how long this situation will last," Itkonen said. Therefore, according to him, the most sensible step is to prepare for all possibilities.

The European Commission is now coordinating with member states, industry players, the International Energy Agency, and other relevant parties. Weekly meetings have been held since the crisis began.

Itkonen said the Commission has a full picture of fuel stocks. However, he distinguished between strategic oil reserves and commercial stocks of jet fuel.

This week, the European Commission will publish guidelines for airlines. The content includes anti-tankering rules, passenger rights, and the possibility of using North American jet fuel in Europe.

Anti-tankering refers to rules to limit the practice of carrying excess fuel from one airport in order to avoid more expensive prices at other airports. In a crisis like this, the practice could exacerbate supply inequalities.

The European Union Aviation Safety Agency will give technical recommendations on the type of fuel that can be used by the aircraft.

Jet fuel prices in Europe have risen sharply since last year. The trigger includes conflicts in the Middle East and disruptions to shipments through the Strait of Hormuz, which also pushed up oil and natural gas prices.

Refineries in the European Union typically meet about 70 percent of the bloc's jet fuel needs. The rest is largely imported from the Middle East and Gulf countries.

The executive director of the International Energy Agency, Fatih Birol, last month warned that Europe could face a risk of a shortage of jet fuel in the near future.

Pressure is starting to be felt at airlines. KLM, the Dutch airline, will cancel 160 intra-European flights this month. Lufthansa also plans to stop its subsidiary, CityLine, and cancel 20,000 short-haul flights by October.

Low-cost airlines Ryanair and EasyJet, as well as the TUI tourism group, have cut their year-end forecasts. The reason is the same: the market is getting harder, and fuel is getting more expensive.