Air France-KLM said jet fuel supply is secure for the peak summer travel season, becoming the latest European airline to signal stable availability after earlier concerns over disruptions linked to the closure of the strait of Hormuz.
"All indicators are positive for the July and August peak travel season" in terms of availability at its French and Dutch airport hubs, chief executive Benjamin Smith said.
The company is "continuously monitoring" fuel supply at destination airports but has committed to maintaining its summer flight schedule.
Other European airlines have delivered similar messages in recent weeks. Last week, Germany's Lufthansa said there were "no signs" of supply risks at its six European hubs — Frankfurt, Munich, Zurich, Vienna, Brussels and Rome. Ryanair chief executive Michael O'Leary has said supply appears secure until September, while Jet2 said it does not expect disruption to its summer schedule.
The improved sentiment reflects a more balanced supply picture. Higher regional refinery output, stockdraws and imports from the US and Nigeria have helped offset the loss of Middle Eastern supply following the effective closure of the strait of Hormuz, easing earlier fears of jet fuel shortages in Europe.
European jet fuel prices have fallen in response, staying below $1,200/t for almost two weeks — the lowest level since the start of the US-Iran conflict, although still around 50pc higher than pre-war levels.
Supply remains tight, however. Unplanned refinery outages could quickly disrupt supply to individual airports, while the ongoing lack of flows through the strait of Hormuz means the global jet fuel market remains undersupplied. Europe must continue to compete with other regions for imports, and market participants expect prices to remain elevated for several months.
