Airlines urge EU to step in as Iran war chokes jet fuel supply

A4E urges EU to monitor jet fuel supplies, temporarily suspend carbon market for aviation, scrap certain taxes

European airlines have urged the European Union to step in with emergency measures to tackle repercussions from the Iran war, including widespread airspace closures and mounting concerns over jet fuel shortages, a document seen by Reuters showed.

Industry group Airlines for Europe (A4E) has requested that the EU introduce a raft of crisis response measures, including EU-level monitoring of jet fuel supplies, a temporary suspension of the EU's carbon market for aviation, and scrapping certain aviation taxes, it said in the document.

The aviation sector has been hit by airspace closures since the United States-Israeli war on Iran began on February 28, with the European Union ⁠Aviation Safety Agency banning European airlines from operating in the airspace of several Gulf countries, including the UAE and Qatar until April 24.

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The sector is also staring at a jet fuel crunch after the closure of the Strait of Hormuz. Last week, industry group Airports Council International Europe (ACI) warned that Europe could face a systemic jet fuel shortage ​in three weeks. The A4E document urged Brussels to consider joint EU purchasing of kerosene, which is a form of jet fuel.

The EU introduced joint natural gas buying to attempt to shore up supplies, after Russia slashed gas deliveries to Europe in 2022. However, the model has not been applied to oil or kerosene so far.

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A4E, whose members include Lufthansa, Air France-KLM, and easyJet, also urged the EU to amend its legal requirement for countries to maintain 90 days of emergency oil reserves as this currently does not include a specific requirement on jet fuel.

The document also asked for clarification on existing legislation, including confirmation that airspace closures due to conflict and resulting operational effects will be considered as justified non-use of slots.

The European Commission has said it will propose a package of measures on April 22 to attempt to offset the fallout of the Iran war in energy markets, but has not confirmed if this will include specific measures on jet fuel.