IATA Warns Jet Fuel Supply Recovery to Take Months Despite Hormuz Reopening
IATA warns global jet fuel supply recovery will take months even if Iran reopens the Strait of Hormuz, citing damage to Middle East refining capacity. Willie Walsh, IATA Director General, told reporters in Singapore this week that while crude oil prices should fall, jet fuel costs will remain elevated due to refinery disruptions.
Fuel is the second-largest airline expense at about 27% of operating costs, after labor. Iran's Hormuz closure, part of its retaliatory moves in the Israel-US war, had choked global jet fuel supplies. Oil prices fell below $100 per barrel after U.S. President Donald Trump announced a two-week ceasefire contingent on the strait's safe reopening.
Airlines worldwide are cutting flights, carrying extra fuel from home airports, and adding refuelling stops as supply squeezes intensify. Jet fuel prices have doubled during this crisis. Walsh likened the situation to post-9/11 (four-month recovery) or 2008-09 (10-12 months), stressing it's not like COVID-19's 95% capacity collapse.
For Nigerian travelers, this means prolonged higher airfares on international routes and possible schedule adjustments by carriers serving Nigeria. Domestic airlines also face soaring fuel costs likely passed to consumers.
Monitor airline announcements for flight reductions, book tickets early to lock in prices, and consider flexible travel dates. Aviation businesses should review fuel hedging strategies and explore alternative suppliers.