The global aviation industry is grappling with a severe crisis driven by a dramatic surge in fuel costs. This situation represents a challenge far greater than those experienced during the COVID-19 pandemic. A primary factor contributing to this crisis is the reduced supply of aviation fuel, largely due to the ongoing conflict in the Middle East and the potential disruption to shipping through the Strait of Hormuz, a critical route for global oil transport.
Fuel prices have risen sharply, with a barrel increasing from approximately $96 in February to $197 by March – a more than doubling of the price in a single month. This escalation surpasses even the price spikes observed at the beginning of the war in Ukraine in 2022. These increased costs are immediately impacting airlines.
For example, the refueling cost for a Boeing 737-800 rose from roughly $17,000 at the end of February to over $27,000 just one week later.
