refineries

For more than two decades, Europe became accustomed to a historical anomaly: crossing the continent for less money than a taxi to the airport costs. However, the outbreak of the Third Gulf War has broken the fragile thread from which aviation was hanging. low-cost: cheap oil and geopolitical stability. With 40% of Europe’s kerosene supply trapped in the Persian Gulf, the ghosts of grounded planes and mass cancellations They flew over the beginning of the high season. But the air apocalypse seems that will not materialize this summer due to a rescue in extremis of European refineries. And although the summer holidays of 2026 seem safe, the price to pay will transform the way we fly forever. For great evils, great remedies. To understand the magnitude of the problem, EUobserver provides devastating information: Before the conflict, Europe imported 500,000 barrels of kerosene per day, and 75% of those imports came from the Middle East. Faced with the threat of shortages, the industry has reacted by forcing the machine with exceptional decisions. Refineries typically have very limited flexibility to alter what they extract from each barrel of crude oil. However, as revealed Financial Times, Operators such as the Spanish Repsol have configured their plants to squeeze out much higher performance, increasing kerosene production between 20% and 25% compared to last year and delaying technical maintenance stops. For this reason, Europe has had to look for new suppliers against the clock. The United Kingdom multiplied its kerosene imports from the United States tenfold in April, according to The Timeswhile it has also been used in Nigeria. But here a technical problem arises: how to explain EUobserverEurope routinely uses “Jet A-1” fuel (which resists down to -47 °C without freezing), while the US refines “Jet A” (which freezes at -40 °C). In a measure of historic urgency, the European Union Aviation Safety Agency (EASA) has given the green light for European airports to use and mix American fuel, warning only to take extreme precautions on very cold routes. Furthermore, the airlines themselves have adopted purely logistical strategies. In fact, it is becoming popular tankinga practice that consists of loading up on extra fuel at the airport of origin to be able to make the return flight without having to refuel in destinations where kerosene is scarce or has prohibitive prices. The direct impact on the passenger. The industrial effort keeps the planes flying, but the user will pay the bill. Filling the tank of a giant like the Airbus A380 has gone from costing around $211,000 to more than $340,000, details Business Insider. Not only that, but the tariff business model ultracheap is staggering. Willie Walsh, Director General of IATA, acknowledged in statements to the BBC that, although some airlines have launched specific discounts to stimulate demand, in the medium term higher fares are “inevitable”, since companies cannot absorb these extra costs. And he warns that even if Hormuz opened tomorrow, the logistical damage will keep prices high until next year. In fact, tickets are already 24% more expensive than in 2025 driven by kerosene that reached a record of $1,904 per ton in April, according to Financial Times. In addition, airlines such as Virgin Atlantic have already added fuel surcharges of up to £360 per flight, while others in the US are raising fees for checked baggage, point Business Insider. A new labyrinth: compensation. Globally, airlines have eliminated 9.3 million seats from their summer schedules (a 4% cut), eliminating less profitable short routes. The Lufthansa Group, for example, has canceled 20,000 flights, as collected The Japan Times. But be careful with the passenger’s rights. There is a crucial legal nuance in the European Union: if your flight is canceled due to a physical and actual lack of fuel supply, it is considered “force majeure” and you are not entitled to financial compensation. However, if the airline cancels it simply because fuel is too expensive and the flight is no longer profitable, it is considered under its control and you could be entitled to compensation of up to 600 euros. So, do you have to worry about vacations? The official message from the industry is unanimous: summer is saved. Analysts consulted by Reuters They point out that airlines, tour operators such as TUI and airports are playing down fears of shortages to protect ticket reserves, which are vital to their annual revenues. This is helped by the fact that European airports did their homework and increased their kerosene reserves by more than 60% during the month of April. Besides, as the CEO of Wizz Air points out in Financial Timessuch high prices attract boats from all over the world, which “makes the market get creative.” However, the real danger comes in winter. The high season lasts because the planes are full and the tourist assumes the cost. But, as they warn traders in it Financial Timesautumn will be a real “stress test”. If the conflict continues and prices remain sky-high when travel demand falls in winter, many routes will no longer be viable and could temporarily disappear. Furthermore, European airlines are holding up better right now thanks to hedging (fuel purchases at a fixed price made months or years ago), a practice that US airlines abandoned after the 2008 crisis. When these European coverages expire, the blow will be total. The Iberian exception: Spain as a refining power. In the midst of the European storm, Spain is experiencing a very different reality. Energy Minister Sara Aagesen assured Reuters a month ago that the national supply is not only robust, but that the country is in a “privileged” situation. While Europe has closed 35 refineries since 2009, losing 20% ​​of its capacity, Spain took the opposite path. According to The EconomistIn the past, companies such as Repsol, Moeve and BP invested 15 billion euros in updating their plants, going against the grain of political signals. In this way, Spain today has eight refineries that represent 13% of the capacity of the entire European … Read more