Willie Walsh, the director general of the International Air Transport Association (IATA), has issued a stark warning that jet fuel shortages this summer will inevitably lead to higher air fares. Speaking at a press conference in London, Walsh stated that the aviation industry is facing a perfect storm of constrained supply and robust demand, which will push ticket prices upward.
Supply Constraints and Rising Demand
According to Walsh, global refineries are struggling to keep pace with the post-pandemic rebound in air travel. Many refineries that shut down during the COVID-19 crisis have not fully resumed operations, while others have been repurposed for renewable fuel production. This has created a bottleneck in jet fuel supply, particularly in Europe and North America.
“We are seeing an inevitable situation where jet fuel shortages will drive up air fares this summer,” Walsh said. “The demand for air travel is incredibly strong, but the supply of jet fuel is not keeping up. This will put upward pressure on ticket prices, and passengers should be prepared for higher costs.”
Impact on Airlines and Passengers
The shortage is expected to hit budget airlines particularly hard, as they operate on thin margins and are more sensitive to fuel price increases. Full-service carriers may also be affected, though they have more flexibility to pass on costs through fuel surcharges. Walsh warned that some airlines might be forced to reduce flight schedules or cancel routes if fuel becomes too expensive or scarce.
For passengers, this means that summer holiday travel could be significantly more expensive than in previous years. Walsh advised travelers to book early and be flexible with their travel dates to secure the best possible fares. He also urged governments to support refinery capacity expansion to avoid future shortages.
Long-Term Solutions Needed
Walsh emphasized that the current crisis highlights the need for long-term investment in sustainable aviation fuels (SAF) and refinery capacity. While SAF can help reduce the industry’s carbon footprint, it is currently more expensive and less available than conventional jet fuel. “We need a coordinated effort from governments, fuel producers, and airlines to ensure a stable and affordable fuel supply for the future,” he concluded.
