The UK government is taking steps to reassure holidaymakers that their summer flights will not be cancelled due to the ongoing Iran war. Energy minister Michael Shanks announced that he is working with airlines to maximise jet fuel supply and prevent disruptions.
Oil prices surged above $125 per barrel on Wednesday, impacting jet fuel costs if the military conflict persists. Shanks stated: “Airlines UK have confirmed that UK airlines continue to operate normally and are not experiencing issues with jet fuel supply. The government continues to work with partners to monitor and mitigate potential disruptions.”
Refineries asked to maximise supply
UK airlines typically rely heavily on jet fuel from the Middle East, where most refining occurs. However, the UK has four remaining refineries: Fawley in Hampshire (ExxonMobil), Humber in Lincolnshire (Phillips 66), Valero’s Pembroke refinery in Wales, and Essar’s Stanlow site in Cheshire. These facilities have been instructed to maximise supply as part of government contingency planning.
Data company Kpler reported that jet fuel shipments fell to a record low last week. Despite this, airlines insist there is no supply crisis yet, though some flights on less busy routes have been cancelled. Lufthansa, for instance, has cancelled 20,000 flights between May and October to conserve fuel.
Airlines seek government support
The closure of the Strait of Hormuz, through which a fifth of the world’s oil and gas flows, has heightened concerns. However, UK airlines typically purchase fuel months in advance to avoid price spikes. They have been asking the government to relax environmental and noise regulations to cope with higher costs during the conflict.
Airlines UK stated: “It is vital that government take the right actions now to ensure the continuation of supply, as well as support the UK aviation industry, which has been impacted by record high jet fuel prices, and that includes providing additional flexibility.”
Ryanair CEO Michael O’Leary reported that the risk of a jet fuel shortage is receding. He said: “A month ago we were saying we're all fine until the end of May. The fuel companies are now saying they're seeing no supply disruption risk until the end of June.”
Jet2, the holiday operator, noted that passengers are booking flights later than usual as they monitor the war’s impact on prices. The company said the “booking profile has become increasingly close to departure” due to the Middle East conflict.
