The ongoing instability in the Strait of Hormuz in southern Iran has led Air France-KLM's subsidiary, Transavia, to announce the cancellation of hundreds of flights in the coming weeks. The airline cited rising kerosene prices and difficulties in importing the fuel from Persian Gulf nations as reasons.
Kerosene, a critical fuel for the aviation industry, is particularly vulnerable to international tensions due to reliance on imports and limited refining capacity, according to Franceinfo.
With summer approaching, a peak travel season in France, the possibility of kerosene shortages looms amidst the uncertain situation in the Middle East. The French government is scheduled to convene a meeting with airline representatives on May 6 to discuss the matter.
Thierry Bros, a professor at Sciences Po and an energy expert, explained that kerosene, like diesel, is a byproduct of crude oil refining. France and Europe produce very little of it, making them heavily reliant on imports and thus susceptible to international crises.
Since the joint attacks by the US and Israel on Iran in late February, airfare prices have been on a steady rise. For airlines, increased kerosene costs directly impact their financial balance.
Bros elaborated that fuel costs can account for up to 40% of a low-cost carrier's ticket price. In an industry with already thin profit margins, these companies find it increasingly difficult to absorb rising fuel expenses.
Maud Bregeon, spokesperson for the French government and interim Minister Delegate for Energy, attempted to reassure the public earlier this week, stating there is no risk of kerosene shortages in the coming weeks. She added that France's strategic fuel reserves include some kerosene, which could be utilized in case of severe difficulties.
French Economy Minister Roland Lescure indicated he would meet with airline operators to review preparations for summer operations. He noted that France imports "slightly over 20%" of its kerosene from Persian Gulf countries but stated that France will enhance its refining capacity and has already authorized domestic refineries to increase production.
Citing data from the Alliance France Tourisme, Libération reported that due to rising oil prices and inflation, coupled with geopolitical instability, some French individuals are altering their summer holiday plans. They are leaning towards destinations that are closer and less expensive, or shortening the duration of their trips.
As many as 86% of respondents indicated they are determined to take a vacation, but 71% have chosen to stay within France, a 3 percentage point increase compared to 2025. (Note: The year 2025 seems to be a typo and likely refers to a previous year or a comparison point, as the article discusses current summer plans.)
Didier Arino, General Manager of the tourism consultancy Protourisme, commented that the initial outbreak of the Middle East conflict led to some French citizens being stranded abroad or having to pay exorbitant prices for return flights. This experience has somewhat dampened the willingness of French people to travel abroad for their summer holidays, and concerns about rising airfares and flight cancellations persist.
Data from the French Association of Tour Operators (Seto) shows that bookings for international travel have decreased by approximately 20% over the past two months.
FACT BOX
- Source: CNA (Central News Agency)
- Category: Survey
- Organizations: Protourisme