Airlines Cancel Flights as Jet Fuel Shortages Worsen

Jet fuel costs and supplies worldwide are under pressure amid the ongoing US and Israeli conflict with Iran, prompting some airlines to cancel flights.

Jet fuel prices reached $195 at the end of March, up nearly $100 from late February when the conflict escalated.

Air New Zealand and United Airlines have both canceled select flights, Lauren Edmonds reported for Business Insider.

The conflict has disrupted supply chains, leaving oil stranded in storage facilities across the Middle East. As a result, oil prices have surged past $100 per barrel, while availability has declined.

Jet fuel prices reached $195 at the end of March, up nearly $100 from late February when the conflict escalated.

As the situation continues, countries with limited domestic production are facing increasing difficulty securing supply.

International Energy Agency Executive Director Fatih Birol said in a recent podcast interview that oil supply losses in April could double those seen in March, worsening shortages of jet fuel and diesel.

Meanwhile, Sparta Commodities analyst June Goh noted that jet fuel requires specialized storage, limiting stockpiles compared to other fuels. She warned that travel costs are rising in Asia, with airlines imposing fuel surcharges or canceling flights, and that Europe could soon face similar shortages.