Iran war: No "short-term" jet fuel shortage says Guernsey airline

Image 1: BBC Nico Bezuidenhout, a man with short grey hair, wearing a light blue shirt and a dark blazer. He is smiling directly at the camera, while standing in the departures hall at Guernsey Airport. BBC

Nico Bezuidenhout said Aurigny's fuel costs had increased by around 120% since the outbreak of the Iran war.

Airline Aurigny will "continue to monitor" jet fuel supplies - but no shortages are expected "for the next four to six weeks", the company's chief executive has said.

Nico Bezuidenhout said Aurigny had received "assurances from multiple suppliers and airports" that there was short-term fuel supplies in both Guernsey and the UK.

But he added the States of Guernsey owned airline was spending around 120% more on fuel than it had been before the outbreak of the Iran war.

The Ports of Jersey said fuel was sourced from a diverse range of countries, which helped it maintain "a dependable and resilient supply chain".

Global oil and gas supplies have been disrupted as shipments through the critical Strait of Hormuz waterway have mostly been halted since the war began on 28 February.

In response to the war, Aurigny last month introduced a temporary £2 fuel surcharge on new bookings, saying that the islands were "not immune from the realities presented by the global travel ecosystem".

'Soaring jet prices'

The airline also announced it would reduce some flights on several routes between mid-April and early June.

"Oil pricing and jet fuel pricing has had a material effect on cost structures, so we took the proactive step of reducing approximately 12% of our flight capacity," Bezuidenhout told BBC Radio 4 on Friday.

He added this was "not due to concerns in terms of jet fuel supply, but rather to ensure we get higher levels of load factors - and in that way, try and reduce the impact of soaring jet prices on consumers."

Bezuidenhout said some of that impact was mitigated by the fact that 20-50% of Aurigny's fuel volumes were "hedged out at fixed pricing".

But he added: "Depending on what aircraft type you operate, a narrow-bodied aircraft ranges from about $600 to $2,100 per flight hour in extra cost.

"Our jet pricing has gone up approximately 120% since the start of the Iran crisis."

Despite increases in the cost of fuel, Bezuidenhout said "in the short-term" Aurigny was not expecting shortages.

He said: "For the next four to six weeks, there is supply certainty both on the Guernsey side as well as on the UK side.

"We've had assurances from multiple suppliers and airports, and we'll have to continue to monitor it."

A spokesperson for the Ports of Jersey said it worked closely with its partner ATF as its aviation fuel supplier and operator at Jersey Airport.

"Jet A1 fuel is sourced via a major UK/global supplier from a diverse range of countries, helping maintain a dependable and resilient supply chain," they said.

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No jet fuel shortage for '4 to 6 weeks' - airline