The Lufthansa Group is concerned about potential shortages in kerosene supply should conflicts in the Middle East persist for an extended period. Grazia Vittadini, a senior executive at Lufthansa responsible for Technology, IT, and Innovation, noted in “Welt am Sonntag” that the availability of aviation fuel is already proving challenging at several Asian airports. According to the Lufthansa manager, the longer the Strait of Hormuz remains blockaded, the more critical the security of the kerosene supply could become. Because the Strait of Hormuz has been unsafe to traverse since the Iran conflict began, supply bottlenecks are already causing a sharp surge in kerosene prices, in some areas exceeding 100 percent. Vittadini stated that while the airlines within the Lufthansa Group are only partially protected from this risk. For the group’s passenger airlines, an allocation coverage of 80 percent of the fuel requirement for the current year is still largely cushioning the impact of rising oil prices. However, she added that rising kerosene costs will inevitably affect them as well.
Economy / Finance
