Aviation: Government Assures 'No Fear' of Kerosene Shortage in May and June

In a move to reassure the vital French aviation industry, the government has publicly stated that concerns over kerosene shortages in the coming months are unfounded. This message comes at a critical time, as airlines brace for the peak summer season, which typically accounts for a significant portion of their annual revenue. The industry has been hit hard by the soaring cost of jet fuel, exacerbated by geopolitical tensions in the Middle East.

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What the energy providers told us is that, a priori, there is no fear of seeing a kerosene shortage in air transport in May and June, and probably little risk for the future.

Economy Minister Roland Lescure emphasized that energy providers have indicated no immediate fears of supply disruptions for May and June, and minimal risk beyond that. This statement aims to quell anxieties among airlines, which have been contemplating measures like targeted flight cancellations and further price increases to maintain profitability. The price of kerosene has nearly doubled since February, dramatically increasing operational costs for carriers.

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The cancellation cases are quite exceptional for the moment in the sector.

Transport Minister Philippe Tabarot highlighted that while cancellations have been exceptional so far, the government is committed to supporting the sector. Measures such as increased flexibility in airport slot allocation are being considered to help airlines optimize their flight schedules and reduce fuel waste. However, the government has firmly rejected calls for kerosene price controls or tax reductions, deeming them too costly and potentially ineffective. Instead, airlines are reminded of existing financial relief measures, like deferred payments for taxes and social charges, to ease immediate cash flow pressures.

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Where it represented about 25% of the operating cost, kerosene now accounts for 45% of the costs.