IATA Chief Has Flagged That Jet Fuel Shortage To Hit Asia First.

April 2026: Willie Walsh, head of the International Air Transport Association (IATA) says the current jet fuel crisis is not on the scale of the COVID-19 pandemic, as demand for flying “continues to be strong. The concern is for a potential shortage during the peak summer period in the Northern Hemisphere”, he said, adding that the jet fuel shortage would hit Asia first, then Europe, Africa and Latin America.

“There’s no way airlines can absorb the massive increase in costs, they will have to pass on to the consumers. The rationing of fuel in Asia and Europe could lead to some flight cancellations”, Willie reiterated.

Meanwhile, the Indian majors – Air India, IndiGo and SpiceJet, which hold 95% of India’s aviation market, have told the government that the airline industry is the verge of “stopping operations”. The war and the near-complete closure of the Strait of Hormuz have ramped up oil prices in India, the world’s fifth-largest aviation market.

Alongside that, airspace restrictions have increased airlines’ operating costs, particularly on long-haul routes. The airlines sought a revision to Aviation Turbine Fuel (ATF) pricing, which accounts for around 40 per cent of a carrier’s operational expenses. At the same time, the Federation of Indian Airlines (FIA) has asked the civil aviation ministry to extend a fuel pricing mechanism to both domestic and international operations.

European airlines are using the fuel price crisis to press the UK and Brussels to roll back a host of regulations they oppose, including plans to allow passengers two free cabin bags on every flight. Among the most eye-catching changes, the European parliament is considering whether passengers should be allowed to bring a second larger piece of hand luggage on board for free, in addition to a smaller item. While some airlines, such as BA, already allow this, low-cost carriers argue this would force them to increase ticket prices and create problems for their business model, which relies on a quick turnaround when the aircraft lands. 

“Temporarily suspending the anti-tankering obligation, and as soon as possible, will help bring some clarity as airlines navigate this new set of challenging circumstances”, Ourania Georgoutsakou, head of industry group Airlines 4 Europe, wrote on his LinkedIn page last week. “Over 50 days have passed since this conflict started and it will take weeks for supply to go back to usual — we need temporary adjustments to EU rules to weather this latest challenge”. 

Team Maverick.