If the current situation in the Strait of Hormuz continues for a few more days, there is a real risk that flight operations could come to a complete halt in several countries. Many airlines have already made significant cuts to their services. With oil transportation through the Strait of Hormuz disrupted, there is a growing shortage of Aviation Turbine Fuel (ATF) in multiple countries. Europe, in particular, is facing severe pressure. The region reportedly has ATF reserves sufficient for only five to six weeks. The International Energy Agency recently warned that if oil supply does not return to normal, serious problems are inevitable. It has already been over a week since that warning was issued. Due to the ongoing conflict involving Iran and military actions by the United States and Israel, air ticket prices have surged sharply across the world.
In India as well, several airlines have imposed heavy surcharges on passengers. The primary reason is the steep rise in ATF prices. As a result, both domestic and international airfares have increased significantly. In simple terms, even those who had planned holiday trips during the summer vacations are now being forced to reconsider after seeing the high ticket prices. The impact has been substantial. Several international airlines are planning major service reductions in May. Reports indicate that 19 out of the world’s top 20 airlines have decided to cut down their operations.