In Africa, the cost of jet fuel is changing faster than you can fly

Airlines in Africa are grappling with surging jet fuel prices after the U.S.-Israeli war on Iran disrupted supply through the Strait of Hormuz. Reuters said the shortage is leaving consumers facing surcharges and carriers struggling to manage volatile fuel costs as the product becomes scarcer.

Africa is among the most exposed regions because around 70% of jet fuel and kerosene imports to the continent flow through the Strait of Hormuz, according to S&P Global. Since the conflict began in late February, shipping of fuel from Middle East refineries through the strait has almost ground to a halt, removing roughly a fifth of global oil and liquefied natural gas supplies from the market.

South African operators said the pricing environment is changing by the hour. Jannie de Klerk of National Airways Corporation said aircraft are often priced on arrival, adding that fuel can become more expensive within hours and make job quotes risky for charter operators.

The cost shock is hitting African carriers harder than many others because jet fuel typically accounts for 30% to more than 40% of operating costs, compared with a global average of 20% to 25%, according to the African Airlines Association. FlySafair said jet fuel makes up 50% to 55% of its direct operating costs and that coastal South African airports saw fuel prices rise by 70% in a single week.

Stocks are also thinning across the continent. The Board of Airline Representatives of South Africa said domestic jet fuel stocks cover about three to four weeks, while Kenya had about 50 days of supply and Zambia about 10 days. Airlines including FlySafair and Airlink are adding surcharges or adjusting fares, while some are also considering capacity cuts if fuel stress worsens.

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