IATA fears jet fuel supply will not recover soon

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SINGAPORE: The head of a body representing global airlines warned on Wednesday it would take months for jet fuel supply to recover even if Iran reopened the Strait of Hormuz, given disruptions to Middle East refining capacity.

Fuel is the second-largest expense for air carriers after labour, typically accounting for about 27pc of operating expenses, according to the International Air Transport Association (IATA).

Iran’s closure of the Strait of Hormuz as part of retaliatory moves in the war has choked supplies of jet fuel globally and news of a ceasefire and the possibility of safe passage through Hormuz sent airline stocks soaring.

Willie Walsh, director general of IATA, told reporters that while he expected crude oil prices to fall, jet fuel costs were likely to remain slightly elevated.

“If it were to reopen and remain open, I think it will still take a period of months to get back to where supply needs to be given the disruption to the refining capacity in the Middle East,” Walsh said.

He shrugged off comparisons to the Covid-19. “This is not similar to Covid. This is not a crisis anywhere close to what we experienced.”

Published in Dawn, April 9th, 2026

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