Asia, Europe could see jet fuel shortages in coming months: IATA chief Willie Walsh

Global airlines' grouping IATA's chief, Willie Walsh, on Wednesday said there could be shortages of jet fuel in Asia and Europe in the coming months, and that the extraordinarily high fuel costs are increasingly being reflected in ticket prices. Prices of jet fuel, which accounts for a substantial chunk of an airline's operational costs, have surged due to the supply disruptions and geopolitical uncertainties in the wake of the West Asia conflict. ''Everybody's watching what's happening with jet fuel -- both supply and pricing. On the supply side, over the next few months, we could see shortages in parts of the world with high dependence on supplies from the Gulf, especially Asia and Europe,'' Walsh, the IATA Director General, said in a statement. Walsh is set to take over as the CEO of India's largest carrier IndiGo in August. The International Air Transport Association is a grouping of more than 360 airlines, including IndiGo, Air India, Air India Express and SpiceJet. According to Walsh, the extraordinarily high cost of jet fuel is increasingly being reflected in ticket prices. ''While this has not impacted March traffic or forward bookings to date, it remains to be seen at what point high prices could start to shift passenger behaviour. So far, the summer is shaping up to be a normally busy time for travel. That's positive news, but airline resilience is being tested and stabilising the supply and price of fuel is crucial,'' he said. Walsh also said that it was important for regulators to be prepared to grant airlines some flexibility on slots considering the extraordinary circumstances of airspace capacity restrictions and potential fuel rationing. His comments were part of IATA's passenger traffic report for March. On April 26, the Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, told the government that the country's airline industry is under extreme stress and on the verge of ''stopping operations'', as they sought revision in ATF (Aviation Turbine Fuel) pricing and financial support. Meanwhile, IATA's report said that in March, total demand, measured in Revenue Passenger Kilometers (RPK) rose 2.1 per cent compared to the year-ago period. ''Total capacity, measured in Available Seat Kilometres (ASK), decreased 1.7 per cent year-on-year. The load factor was 83.6 per cent (+3.1 ppt compared to March 2025),'' it said.

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