Could a Fuel Shortage Affect the Airlines?

With commercial aviation recovering at a blistering pace, is a jet fuel shortage on the horizon for airlines? American Airlines is warning pilots about potential fuel shortages in the Western United States, while asking them to save gas wherever they can.

Even though all three U.S.-based legacy carriers were optimistic about returning to profitability before the end of 2021, a new threat could create even more problems for the sector recovery. CNBC reports American Airlines is asking pilots to be easy on fuel, as delivery issues could be affecting small and midsized airports.

Fuel Shortage Could Affect Western Airports First, Requiring Extra Stops

According to a memo sent to American’s workforce, the carrier is tracking the potential for fuel shortages across the western half of the United States. The issue isn’t related to a supply disruption or infrastructure attack, but rather a lack of truck drivers available to move fuel from refineries to airports.

“American Airlines station jet fuel delivery delays initially affected mostly western U.S. cities, but are now being reported at American stations across the country,” reads the memo from John Dudley, American’s managing director of flight operations, as quoted by CNBC. “Delivery delays are expected to continue through mid-August.”

While the carrier was forced to cancel flights in July due to staffing issues, American has not yet cut operations due to fuel issues. The memo notes that the situation is so far “minimal,” and they are continuing to monitor the developing situation. In the meantime, the airline is asking pilots to attempt to save fuel wherever possible. If the situation worsens, pilots could be forced to add stops to their service.

American may not be the only airline worried about fuel issues in the west. In statements to CNBC, Delta Air Lines noted they have not cancelled any flights due to fuel issues but are aware of the situation. In 2012, the Atlanta-based carrier bought an oil refinery in Pennsylvania but is reportedly seeking to sell the subsidiary off. Southwest Airlines told CNBC they are considering plans to mitigate fuel shortages.

With More Demand, Fuel Prices Expected to Increase in Second Half of 2021

Because more flyers are taking to the skies again, both airlines and statisticians say they could be forced to pay more to fill up for the rest of this year. Data shows fuel prices experienced a near 100 percent price increase over the past 12 months, with projections suggesting it could go over the $2 mark in the third quarter – leaving flyers concerned it could be passed down in ticket costs.