00:00A surge in jet fuel prices driven by the U.S.-Israeli war on Iran has upended the global aviation industry.
00:08It's forced airlines to raise fares and revise their financial outlooks.
00:12With jet fuel shortages expected, how will travel be disrupted this summer?
00:19Continued restrictions on trade through the Strait of Hormuz plays a big part.
00:23It carried about 20% of daily global oil supplies until the war began on February 28.
00:28Jet fuel prices have soared from a range of $85 to $90 per barrel, up to between $150 to $200
00:36per barrel in recent weeks.
00:39While U.S. President Donald Trump extended a ceasefire, Iran and the U.S. are still restricting transit of ships
00:45through the Strait.
00:48Global tourism and aviation expert Anita Menderata told Reuters supply constraints will take time to unwind.
00:55The supply chains that need to be reactivated once the Strait is opened up again.
01:00And then again, moving through the refining and distribution of jet fuel to get to international airports and into the
01:06airlines.
01:07So this is going to take us without question into the summer.
01:10Menderata said that European airlines could feel the hit soon.
01:15German company Lufthansa Group has already said 20,000 short-haul flights would be removed from its schedule through October.
01:22Europe's largest tour operator TUI cut its underlying operating profit forecast and suspended its revenue guidance, citing uncertainty.
01:29Airlines EasyJet and WizAir have also warned of the negative impact of the conflict.
01:35Menderata says airlines won't want to cancel flights, but they will have to decide whether to send jets into regions
01:42where refuelling may be too expensive.
01:44So they're looking at it from that perspective as wisely as possible and then redeploying their schedules to be able
01:51to marry to demand and yet recognize the importance of jet fuel supply.
01:55A European Union spokesperson told Reuters the EU is prepared to coordinate a release of jet fuel stocks if disruption
02:03persists.
02:05Even after military action ends, the jet fuel shortages and travel confidence will not be fixed immediately.
02:10Because even if everything is fine from the point of view of supply chains, airlines are able to absorb back
02:16the jet fuel they require.
02:18Are travelers confident going back to those original travel routes? So it is going to take some time.
02:24...
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