The Lufthansa Group is concerned that a prolonged conflict in the Middle East could lead to shortages in kerosene supply. Grazia Vittadini, Lufthansa’s Executive Director for Technology, IT, and Innovation, told “Welt am Sonntag” that the availability of jet fuel is already difficult at several airports in Asia. She noted that the longer the Strait of Hormuz remains blocked, the more critical the supply security of kerosene could become. Due to the Strait of Hormuz no longer being safe to pass through since the start of the Iran conflict, supply shortages are already causing a sharp increase in kerosene prices, in some cases rising by more than 100 percent. However, Vittadini added that the airlines within the Lufthansa Group are only partially protected. While an 80 percent hedging ratio of the jet fuel requirements for passenger airlines for the current year largely buffers the impact of oil price increases, the rising costs of kerosene will still affect Lufthansa.
Lufthansa Warns Over Fuel Shortages Amid Middle East Tensions
