The European Union is set to confirm that the continent’s airlines can burn a type of jet fuel that’s far more commonly consumed in the U.S., helping them to cope with the oil-market chaos wrought by the effective closure of the Strait of Hormuz.
It emerged last month that Airlines 4 Europe, a trade association representing the likes of Deutsche Lufthansa AG, Air France-KLM and British Airways owner IAG SA, asked the EU to allow imports and use of Jet A-type fuel used predominantly in the U.S. into the bloc, according to a document seen by Bloomberg. The European norm is A1.
According to people familiar with the matter, the European Commission, the bloc’s executive arm, will clarify on May 8 that there are no regulatory hurdles to doing so, although a change of fuel grade within a logistics system may require the agreement of users of that system. They asked not to be identified because the information is not yet public.
Soaring fuel costs, normally the industry’s second-biggest cost after crew, have forced airlines to scrap tens of thousands of flights, so the ability to tap a wider supply pool may ease some pressure with the key summer-vacation season fast approaching.
The EU will also confirm that it’s not going to penalize carriers if they can’t use their slots because of issues like fuel shortages caused by the war. At the same time, though, the EU will remind airlines that they can’t retroactively boost ticket prices after they’ve been purchased, something that could lead to more cost management.
The closure of Hormuz has blocked hundreds of millions of barrels of oil and fuels, and concerns in Europe have centered in particular on jet fuel.
The EU’s fuel clarification, which will also say there have been no supply shortages reported so far, may potentially encourage more shipments from the U.S. into the region.
The ongoing effective closure of Hormuz — the vital waterway that connects energy infrastructure inside the Persian Gulf to global markets — is depriving Europe of a huge chunk of its usual jet fuel imports.
If Hormuz stays largely shut, the region’s stockpiles of jet fuel — including kerosene, from which it’s made — stand to drop at a rate of 230,000 barrels a day this quarter, according to an estimate from consultancy Energy Aspects. That’s roughly double Italy’s entire demand.
Jet A1 is by far the world’s most commonly used aviation fuel made from kerosene, whereas Jet A — also a kerosene type fuel — is normally only available in the U.S. The key difference between the two is the point at which they freeze: Jet A-1 is -47C (-53 F) or below, while Jet A is only -40C (-40 F).
The European Union Aviation Safety Agency, the EU body responsible for civil aviation safety, regulation, and environmental protection, issued a bulletin on the safe use of Jet A aviation fuel. It said that operators need to be aware of the differences in two fuels’ properties, in particular their different freezing points.
The lower freezing point makes Jet A-1 more suitable for long international flights, especially on polar routes during the winter, according to a Chevron report.
Large aircraft are generally certified to operate on both Jet A and Jet A-1, and Jet A is routinely used in North America and on transatlantic operations into Europe, according to the EU document.
The European Union and U.K. have already significantly increased imports of jet fuel/kerosene from the U.S., with President Donald Trump also telling nations to buy fuel from his country, in a March social media post.
