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Airline fuel shortage forces carriers across Asia-Pacific to cut flights as Middle Eastern supply disruptions intensify geopolitical tensions.
The recent airline fuel shortage and increased jet fuel prices are forcing airlines to cut flights throughout Asia and the Pacific, as disruption and shortages of supply continue in the Middle East. The reduction in jet fuel, or aviation kerosene, is due to US restrictions placed on oil shipped through the Strait of Hormuz following unsuccessful peace talks with Iran, resulting in about 20% of the world's oil supply being cut off.
Jet fuel prices have nearly doubled to about US$198 a barrel for the week ending on April 10, 2022, according to the International Air Transport Association, causing airlines to scale back their operations and to suspend routes from Pakistan to New Zealand. Philippine Airlines is assessing five suspended routes, Vietnam Airlines has cancelled 23 flights per week, Air New Zealand's consolidation of about 4% of its capacity and Pakistan International Airlines reducing service to Beijing, Kuala Lumpur and some countries in the Middle East.
The Asia-Pacific region is particularly vulnerable due to its heavy reliance on oil from the Middle East and a lack of strategic reserves to help buffer against prolonged disruptions. Nations without or with limited reserves and domestic refining capacity are among the worst impacted. In contrast, China has the advantage of its large amount of onshore refining capacity. Japan has been preparing for supply chain difficulties and has the largest strategic petroleum reserves in the world; consequently, Japan is likely to withstand the current crisis. Australia is less prepared to deal with a jet fuel shortage than its Asian neighbors.
Business Honor views this as a critical test of supply chain resilience and strategic preparedness among Asia-Pacific carriers facing unprecedented geopolitical disruption.
About the Author
Rohan Pius is an experienced news writer with extensive expertise across multiple sectors. He combines sharp analytical skills with thorough research to produce clear, insightful reporting on industry trends and their economic impact.
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