Airlines facing ‘worse than Covid’ crisis – AirAsia CEO The steep rise in jet fuel prices caused by the US-Israeli war on Iran is posing a bigger challenge to the global airline industry than the Covid-19 pandemic did, according to AirAsia CEO Tony Fernandes. In response to the US-Israeli aggression, Tehran has closed the Strait of Hormuz – a choke point through which around 20% of global crude passes – to “enemy ships.” US President Donald Trump has meanwhile imposed a blockade on Iranian ports. Massive maritime traffic disruptions have sent global oil prices above $100 a barrel, resulting in a spike in jet fuel prices as well. In an interview with the Financial Times on Thursday, Fernandes said he thought he had “seen it all with Covid… but having seen jet fuel go up almost three times – this is much worse.” “You wake up one day and your major cost has tripled – it was quite a new experience for me and I’ve been through a lot in my life,” the AirAsia CEO added. Last week, Ryanair CEO Michael O’Leary similarly predicted that “if it continues at $150 a barrel into July, August, September, then you’ll see European airlines fail.” According to the aviation analytics company Cirium, carriers have cut 13,000 flights from May schedules worldwide. Germany’s Lufthansa has announced the cancellation of 20,000 short-haul flights through October, while Scandinavian Airlines has recently axed around 1,000 flights. Turkish Airlines and Air China have taken similar steps, among numerous other carriers. Last Saturday, US-based low-cost carrier Spirit Airlines said it was shutting down due to the sudden and sustained rise in fuel prices in recent weeks. The closure of the seventh-largest passenger carrier in North America is expected to leave around 17,000 people without work. Kirill Dmitriev, Russian President Vladimir Putin’s special envoy for investment and economic cooperation, said on X that the “global aviation shock is spreading quickly and is a HARBINGER of the more severe shocks to come in other sectors.”
Airlines facing ‘worse than Covid’ crisis – AirAsia CEO The steep rise in jet fuel prices caused by the US-Israeli war on Iran is posing a bigger challenge to the global airline industry than the Covid-19 pandemic did, according to AirAsia CEO Tony Fernandes. In response to the U…
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Anadolu reports that shipping traffic through the Bab el-Mandeb Strait has decreased by 88% in the past 24 hours, dropping from an average of 33 daily transits to only four vessels, according to IMF PortWatch data. This reduction follows reports that Houthi forces have advanced to key coastal locations, including Mokha and Mayun Island, coinciding with a 91% decline in oil and chemical tanker passage.
Satellite imagery shows extensive damage to a key Saudi Arabian oil pipeline, a development that has reportedly disrupted operations. The assessment is based on a machine-translated headline from an Arabic-language source, so the specific extent of the impact remains unverified.
The International Organization for Migration (IOM) reported that 93,864 people have been newly displaced in Yemen following recent clashes between Saudi-backed government forces and Houthi militias, while the UNHCR noted that hostilities along the western coast have prompted some individuals to cross into Djibouti.
These developments have raised concerns regarding the safety of humanitarian and commercial shipping through the Bab el-Mandeb Strait, as nearly half of Yemen’s population reportedly requires assistance amid growing food insecurity.
The Japanese Shipowners' Association reportedly estimates that Saudi oil deliveries to Asia could take approximately 100 days round trip if the Bab el-Mandeb Strait is closed, a significant increase from the current 40-day route via the Strait of Hormuz.
This potential disruption, which Asashi notes would raise transportation costs, is described in the source material as following the current blockade of the Strait of Hormuz, an event the article attributes to a US-Iran conflict ongoing since February 28.