'Europe has to fight for every cargo of jet fuel to come,' says Argus strategist

European jet fuel supply is still adequate, but high fuel costs are prompting airlines to cancel flights they expect will be unprofitable. The update points to margin pressure for carriers rather than a fuel shortage, with the key issue being elevated input costs. Market impact is likely limited unless higher jet fuel prices persist and trigger broader capacity cuts.

Analysis

European jet fuel supply is still adequate, but high fuel costs are prompting airlines to cancel flights they expect will be unprofitable. The update points to margin pressure for carriers rather than a fuel shortage, with the key issue being elevated input costs. Market impact is likely limited unless higher jet fuel prices persist and trigger broader capacity cuts.