IATA Says Jet Fuel Supply Recovery Will Take Months After Hormuz Reopens
Willie Walsh said airlines are cutting flights and adding fuel stops as jet fuel prices stay elevated and recovery could take months, IATA said.
- On Wednesday, International Air Transport Association Director General Willie Walsh stated that even if Iran reopened the Strait of Hormuz, jet fuel supply recovery would take months due to critical disruptions in Middle East refining capacity.
- Oil fell below $100 per barrel after President Donald Trump announced a two-week ceasefire with Iran contingent on Strait of Hormuz reopening, though significant damage to refining infrastructure remains a persistent bottleneck.
- United Airlines Holdings trimmed roughly 5 per cent of capacity to manage reduced fuel supply, while AirAsia hiked fares as much as 40 per cent earlier this week to offset the price shock.
- China and Thailand halted jet fuel exports while South Korea capped supplies at 2025 levels, leaving import-dependent markets including Vietnam, Myanmar, and Pakistan facing the sharpest pain from regional supply constraints.
- Thai Airways CEO Chai Eamsiri called this the "worst oil shock" in his nearly four-decade career, while Malaysia Aviation Group's Nasaruddin Bakar warned prices will take many more months to stabilize even if conflict ends.
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It will take several months for the aviation sector to return to normal kerosene supplies and lower hydrocarbon prices, even if the Strait of Hormuz is permanently reopened, the director general of the International Air Transport Association (IATA) warned today.
Even with Hormuz reopened, jet fuel supplies won't recover for months, IATA warns
The head of the International Air Transport Association (IATA), Willie Walsh, stated on Wednesday that it would take months for jet fuel supply to recover, even if Iran reopened the Strait of Hormuz. This is due to disruptions in refining capacity in the Middle East. Jet fuel is the second-largest cost for airlines after labor, […] The post Even with Hormuz reopened, jet fuel supplies won’t recover for months, IATA warns appeared first on Modern…
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