European airlines’ ‘confidence grows’ over jet fuel supplies

European airlines are growing more confident they can avoid jet fuel shortages this summer as refiners maximise production and increase imports, according to the Financial Times.

 

The loss of supplies from the Middle East because of the Iran war has prompted fears of shortages over the peak summer travel season.

 

But the bosses of Ryanair, British Airways, Air France and Wizz Air said they had enough supplies to cover the coming months, reported the FT.

 

Michael O’Leary, Ryanair Group chief executive, said he had “almost zero concerns about fuel supplies across Europe” for the summer thanks to increased supplies from the US, west Africa and Norway. 

 

British Airways said earlier this month that it had enough supplies for its summer schedule; Air France said its airports had sufficient reserves to cover several months; and Wizz Air chief József Váradi said rising jet fuel prices meant US and Nigerian refineries sent additional exports to Europe, reported the newspaper.

 

More: ‘No need to panic’ on jet fuel, says Iata chief

 

Analysis: Fuel mitigation welcome amid uncertain outlook

 

The FT also noted Spanish energy group Repsol has increased jet fuel production for the coming months by 20-25%.

 

However, the executive director of the International Energy Agency has warned that the world’s oil stockpiles are “depleting very fast”.

 

Fatih Birol said commercial reserves were being “declining rapidly” as oil and gas shipments from the Middle East continue to be blocked by the war in Iran.

 

Speaking at a meeting of G7 finance ministers in Paris, Birol warned there were only “several weeks” left of stored supplies at current rates of depletion, reported the Telegraph.

 

Rachel Reeves, the Chancellor, and Bank of England Governor Andrew Bailey attended the G7 summit in Paris on Monday (May 18) to discuss the impact of the war in Iran on the economy and consider how to reopen the Strait of Hormuz.

 

A fifth of the world’s oil and gas usually travels through the Middle Eastern channel but ships have been blocked by the US and Iran.