(FOX NEWS) — Chevron CEO Mike Wirth warned that strain on the aviation industry could intensify in the coming weeks as jet fuel supplies tighten, driven by disruptions tied to the Iran war.
Appearing Sunday on CBS News’ “Face the Nation,” Wirth said jet fuel in key regions was already at seasonally low levels before the conflict began, leaving markets vulnerable to supply shocks.
“It’s not flowing today. So, we are seeing jet fuel tighten very quickly in Europe, in Asia, and we’re seeing airlines announce adjustments in their flight schedules,” Wirth said. “I think aviation is clearly an area where it’s going to probably get worse over the next few weeks.”
Jet fuel prices have surged sharply since late February, reflecting constrained shipping through the Strait of Hormuz – a critical oil transit choke point through which roughly one-fifth of global supply typically passes.
U.S. jet fuel prices have climbed from about $2.50 per gallon before the conflict to $4.19 per gallon as of April 24, according to Airlines for America. Globally, prices remain volatile, with the International Air Transport Association reporting a 6.7% week-over-week decline to $184.63 per barrel, even as broader supply pressures persist.
Airlines are already adjusting operations in response to higher fuel costs. United Airlines said it plans to cut about 5% of its planned capacity this year, while Delta Air Lines has trimmed growth plans by roughly 3.5 percentage points.
