In Africa, the cost of jet fuel is changing faster than you can fly
Airlines are grappling with soaring jet fuel prices as the U.S.-Israeli war on Iran has caused a supply shortage. Around 70% of jet fuel and kerosene imports to Africa flow via the Strait of Hormuz, according to S&P Global. Since the conflict began in late February, shipping of fuel from refineries in the Middle East through the Strait of Hormuz has almost ground to a halt, removing roughly a fifth of global oil and liquefied natural gas supplies from the market.
Jannie de Klerk, executive director of flight operations at South Africa's National Airways Corporation, told Reuters, "You fly to airports across Southern, West and East Africa and you negotiate prices on arrival." He also said, "By the time you get there, the price has changed." Jet fuel prices in north-west Europe have surged to record highs of nearly $239 a barrel since the conflict began, according to LSEG data. Asian jet fuel prices are approaching $200 a barrel. Jet fuel typically accounts for between 30% to more than 40% of operating costs for African carriers, compared with a global average of 20% to 25%, according to the African Airlines Association. FlySafair said jet fuel usually makes up 50% to 55% of its direct operating costs. At current prices, it estimates an additional cost of about R35,000 per flight hour ($2,071) for each of its 37 Boeing 737-800 in operation. Coastal airports in South Africa saw jet fuel prices rise by 70% in a single week. Benchmark Brent futures settled at $112.19 a barrel Friday.
The Board of Airline Representatives of South Africa said domestic jet fuel stocks are sufficient for about
Quick Summary
African airlines are struggling with rising jet fuel costs amidst global supply concerns - a situation exacerbated by international conflicts. The instability is creating operational challenges, forcing airlines to implement defensive measures.
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