Jet Fuel Shortage Deepens Pressure on Global Airlines

A worsening jet-fuel shortage tied to the Middle East war is creating fresh market pressure on airlines and energy markets. Heathrow’s April traffic fell 5% to 6.7 million (Middle East travel down 50%) while transfer traffic rose 10% as passengers reroute to Asia/Oceania. Fuel supply metrics have plunged to record lows and jet fuel prices have surged (CEO Tony Fernandes said jet fuel rose almost threefold), contributing to airline distress — Spirit Airlines recently collapsed after failing to secure a $500m lifeline. Regulators and governments are loosening rules to ease airline strain, but higher fuel costs and constrained supplies threaten more flight cancellations and margin pressure for carriers. The situation supports higher crude and refined-fuel prices and is a near-term negative for travel-exposed sectors, which could weigh on the UK 100 index.