<\/p>\n
Airlines across Asia are cutting flights, carrying extra fuel from home airports
\nand adding refuelling stops as the Middle East conflict squeezes
\njet fuel supply in some \u200ccountries, adding to pressure on an
\nindustry already hit by a sharp jump in fuel costs.<\/p>\n
European carriers are bracing for \u200bsimilar disruption after
\nIran’s closure of the Strait of Hormuz cut off nearly 21% of
\nglobal seaborne jet fuel supply, according \u2060to Kpler.<\/p>\n
Previous oil shocks mainly drove up prices, but this one is
\nalso constraining physical supply, forcing governments, airlines
\nand airports to consider rationing.<\/p>\n
“In my conversation with airlines, they are very concerned
\nabout what the future looks like, because we do not know when
\nthe war will end and we don’t know when the supply chain, the
\nfeedstock, \u200cwill come from the Gulf area,” said Shukor Yusof,
\nfounder of aviation consultancy Endau Analytics.<\/p>\n
Asia, Europe and Africa are most exposed, analysts say,
\nbecause the U.S. has ample domestic supplies.<\/p>\n
Within Asia, the pain has so far been sharpest in
\nlower-income, import-dependent markets such \u200cas Vietnam, Myanmar
\nand Pakistan after China and Thailand halted jet fuel exports
\nand South Korea capped them at last year\u2019s levels.<\/p>\n
Budget airline AirAsia \u200cX \u2060is now loading extra fuel
\nin Malaysia before flying to Vietnamese airports, CEO Bo Lingam
\ntold reporters on Monday.<\/p>\n
“Not to say \u2060that they are not giving us fuel, but they limit
\nthe amount of fuel,” he said of Vietnam.<\/p>\n
JET FUEL RATIONING<\/p>\n
Past temporary jet fuel shortages at airports due to
\nshipment disruptions or contamination have usually led to
\nrationing rather than complete outages.<\/p>\n
Airlines have typically responded by loading extra fuel at
\nhome airports, adding refuelling stops on longer routes or
\ncarrying less cargo.<\/p>\n
For a more \u200bprolonged crisis, another solution is cutting
\nflights, Ryanair CEO Michael O’Leary \u200csaid last week when he
\nexpressed concerns the Middle Eastern conflict may not end this
\nmonth.<\/p>\n
“If there’s a risk to 10% or 20% of the fuel supply in June
\nor July or August, then we and other airlines will have to start
\nlooking at cancelling some flights or taking some capacity out,”
\nhe told reporters.<\/p>\n
Asia, which has a thinner supply cushion than Europe and is
\nmore dependent on Hormuz flows, has been hit \u200cmore quickly.<\/p>\n
Vietnam Airlines has cut 23 domestic flights per
\nweek to conserve fuel, according to the country’s aviation
\nauthority.<\/p>\n
Airlines based in Myanmar \u200bsuspended domestic flights for
\npart of March due to jet fuel shortages, its transport ministry
\nsaid, and some of its carriers have also cut capacity in April,
\naccording to aviation data provider Cirium.<\/p>\n
Air India is making refuelling stops in Kolkata on \u2060its
\nreturn from Yangon to Delhi due to fuel shortages at Yangon
\nairport, according to a source familiar with the matter.<\/p>\n
In the South Pacific, Tahiti International Airport has
\nrestricted refuelling for international flights to quantities
\nessential for flight operations due to the Middle Eastern
\ncrisis, a notice to pilots shows.<\/p>\n
In Pakistan, pilots are being advised \u200cto carry maximum fuel
\nfrom abroad.<\/p>\n
That practice, known as “tankering”, is costly because
\ncarrying extra fuel increases fuel burn.<\/p>\n
“Some countries are in better shape than others,” said
\nBrendan Sobie, a Singapore-based independent aviation analyst.
\n“Some may be limiting (fuel for) foreign airlines, which then
\nleads to the tankering. This could be proactive as some
\ncountries fear they could run out.”<\/p>\n
DEMAND DESTRUCTION<\/p>\n
A more than doubling of jet fuel prices since the start of
\nthe Iran war has pushed some airlines to cut capacity, while
\nothers have hiked fares and imposed fuel surcharges.<\/p>\n
In one of the starkest examples, Batik Air Malaysia has
\nslashed domestic capacity by 36%, with CEO Chandran Rama Muthy
\ndescribing the cuts as a necessary and proactive response to a
\n“crisis-mode” environment.<\/p>\n
“If we were to continue operating without making
\nadjustments, it could \u200cfurther expose the company to operational
\nand financial risk,” he said.<\/p>\n
Gulf carriers such as Emirates and Qatar Airways have been
\noperating well below normal capacity due to the conflict, while
\nother \u200bglobal airlines have also cut flights as fare increases
\nneeded to cover fuel costs deter price-sensitive travellers.<\/p>\n
Even with flight cuts, airline demand is not falling fast
\nenough to match the drop in jet fuel supply, analysts said.<\/p>\n
At least 400,000 barrels per \u2060day of jet fuel that normally
\nis produced in the Asia-Pacific region via crude that transits
\nthe Strait of Hormuz have been affected since the crisis
\nstarted, according \u2060to Reuters’ calculations.<\/p>\n
“There is no easy way to replace the lost volumes,
\nespecially as Asian supply will start to tighten as refiners cut
\nruns,” said Alex Yap, senior oil products analyst at Energy
\nAspects.<\/p>\n
Industry sources estimate flight cancellations have lowered
\nApril demand in Asia specifically by \u200conly about 50,000 to
\n100,000 barrels per day, suggesting deeper cuts may be needed.<\/p>\n
“We’re only just at the start of that cycle (of flight cuts)
\nas demand from passengers seems to be resilient, but I think any
\noil-spike induced economic slowdown could hit demand in the
\nsecond half of \u200bthe year,” said Cirium’s Asia editor, Ellis
\nTaylor.<\/p>\n
(Reporting by Julie Zhu in Hong Kong and Trixie Yap in
\nSingapore; Additional reporting by Danial Azhar in Kuala Lumpur,
\nSam Tabahriti in London and Abhijith Ganapavaram in New Delhi;
\nEditing by Jamie Freed)<\/p>\n
Published on April 7, 2026 <\/p>\n<\/div>\n