Freighter operators more concerned about jet fuel price than supply

Freighter operators are still more concerned about the high price of jet fuel than they are about shortages as uncertainty surrounds the U.S.-Iran war talks and the extension of the ceasefire today. “We’re not seeing a situation where jet fuel is becoming globally unavailable, but we are of course concerned and keeping a close eye,” Baldvin Hermannsson, chief executive of Air Atlanta, told Cargo Facts . “Risk has increased on a more local level, in certain regions or airports, which can affect large freighter operations planning. Overall, high fuel prices remain the primary challenge for the industry for now.” [caption id="attachment_57296430" align="aligncenter" width="1280"] A 747-400F operated by Challenge Group. (Courtesy/Hahn Airport)[/caption] The carrier is monitoring availability, but it is more a localized operational consideration than a systemic concern for now, Hermannsson said. ‘Sobering’ warning International Energy Agency Executive Director Fatih Birol warned last week that Europe has “maybe six weeks of jet fuel left” if it does not replace at least half of its imports from the Middle East. IATA Director General Willie Walsh called the agency’s assessment “sobering.” “We have also estimated that by the end of May we could start to see some cancellations in Europe for lack of jet fuel,” Walsh said in an April 17 statement. “This is already happening in parts of Asia. Along with doing everything possible to secure alternative supply lines, it’s important that authorities have well-communicated and well-coordinated plans in place in case rationing becomes necessary, including for slot relief.” Astral Aviation CEO Sanjeev Gadhia also told Cargo Facts that he is not too worried because his carrier’s fuel suppliers have sufficient stocks to maintain operations without interruptions for now. “Availability at our Nairobi hub is good,” he said. “However, what is not good is the high prices which is causing immense concern for perishable exporters into Europe and the Middle East as the fuel surcharges are making it uneconomical. Hence we are seeing reduction in export volumes.” Prices dropped most last week since Feb. 28 The global weekly average price of jet fuel declined for the second consecutive week last week to $184.63 per barrel after a fourteen-day ceasefire in the Iran war began April 8. That represented a week-over-week decrease of 6.7%, according to the IATA Jet Fuel Monitor, which was updated April 20. [caption id="attachment_57296429" align="aligncenter" width="1651"] (Courtesy/IATA)[/caption] In comparison, the global average price for the week ending April 10 fell to $197.83 per barrel, after a record high of $209 per barrel for the week ending April 3. Asia and Australia, which continue to have the highest average cost of jet fuel globally, saw a price of $207.5 per barrel for the week ending April 10, a WoW drop of 4.5%, according to IATA. Africa’s average jet fuel spot price remained the second-highest at $198.16 last week, 5.8% lower than the previous week. The Middle East was close behind Africa, with an average weekly price of $197.60 per barrel. That surpassed the average weekly price in Europe and the Commonwealth of Independent States, which averaged $188.08 per barrel for the week ending April 10 after a WoW drop of 7.6%, according to IATA. In North America, which also saw a 7.6% decrease WoW, the average price was $167.33, while Latin America and the Caribbean also decreased by 7.6% WoW to $179.63 per barrel, according to IATA. The fourteen-day ceasefire was scheduled to end on April 22. However, U.S. President Donald Trump announced today that he had extended it for an unspecific length of time, even as. Iran closed the Strait of Hormuz again over the weekend and the status of a second round of peace talks remains unclear. Staying vigilant Challenge Group also told Cargo Facts that it is not seeing any impact on its operations due to jet fuel availability because it benefits from long-term contractual agreements that ensure stability and continuity of supply. “We have sufficient fuel supply to fully support our current operations without disruption,” a spokesperson said. “At no point have we had to cancel or adjust flights due to fuel shortages. “That said, should the current geopolitical situation persist or escalate over a prolonged period, the risk of broader supply constraints cannot be disregarded,” the spokesperson said. “The industry has learned that resilience lies not only in reacting to disruptions, but in anticipating them. We remain vigilant in that regard.” Cargo Facts EMEA 2026 will take place April 28-30 in Brussels at the Marriott Hotel Grand Place. For more information and to register, visit CargoFactsEvents.com .

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