Jet fuel supply may take months to recover despite ceasefire, says IATA; Ben Gurion reopens

Jet fuel supply disruptions could persist for months even if the Strait of Hormuz fully reopens, industry officials say, underscoring ongoing pressure on airline operations and pricing.

As reported by Reuters, a temporary ceasefire in the region has raised hopes for improved oil flows, but aviation leaders say the impact on jet fuel availability will take longer to resolve.

"If it were to reopen and remain open, I think it will still take a period of months to get back to where supply needs to be given the disruption to the refining capacity in the Middle East," said Willie Walsh, director general of the International Air Transport Association (IATA).

The issue is not just access to crude oil, but damage to refining infrastructure across the Middle East, which continues to constrain jet fuel production.

Airlines are already adjusting operations in response. 

Carriers have been raising fares, cutting capacity, carrying additional fuel from departure airports and adding refuelling stops as supply remains tight.

According to Reuters, jet fuel prices have more than doubled since the conflict began, outpacing increases in crude oil and adding significant cost pressure for airlines.

Delta Air Lines said it expects to pay about $4.30 per gallon for jet fuel in the second quarter, contributing to more than $2 billion in additional costs year over year.

As previously reported by PAX, Canadian carriers are also responding to higher fuel costs. 

Flair Airlines, WestJet, Sunwing Vacations, Air Canada Vacations, Porter Airlines and Transat have introduced temporary fuel surcharges ranging from $40 to $60, while WestJet has reduced its network capacity by approximately one per cent in April and three per cent in May, including some routes serving Edmonton.

While airline and travel stocks have risen following news of the ceasefire, the broader recovery for the aviation and tourism sectors is expected to take longer, with ongoing infrastructure damage and supply constraints continuing to affect operations.

Fuel is typically the second-largest expense for airlines after labour, accounting for roughly 27 per cent of operating costs.

Ben Gurion Airport reopens

Meanwhile, Israel's Transportation Ministry has announced that the country will resume regular air operations at Tel Aviv’s Ben Gurion Airport starting at midnight Wednesday-Thursday, roughly one day after a ceasefire was announced between the US, Israel and Iran.

As reported in The Times of Israel, El Al, Israir, and Arkia are preparing for a gradual expansion of flight operations but foreign carriers likely to remain grounded for the time being. 

Israel’s airspace has been shut to foreign airlines since the start of the war with Iran on February 28.

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