By Enyichukwu Enemanna
African airlines are grappling with increasing running costs arising from soaring prices of jet fuel, sparked by the U.S.-Israeli war on Iran, which has caused a shortage of supply chain, leaving consumers to bear extra charges while airlines struggling to manage volatile costs as the fuel gets scarcer.
Africa is among the most exposed regions to both supply disruptions and higher prices.
About 70% of jet fuel and kerosene imports to the continent is shipped from the now partially blocked Strait of Hormuz, financial and commodities analytics firm S&P Global says.
Since the conflict began February 28, shipping of fuel from refineries in the Middle East through the Strait of Hormuz has almost ground to a halt, removing roughly a fifth of global oil and liquefied natural gas supplies from the market.
“You fly to airports across Southern, West and East Africa and you negotiate prices on arrival,” Reuters quoted Jannie de Klerk, executive director of flight operations at South Africa’s National Airways Corporation, a charter business as saying.
“By the time you get there, the price has changed. If the war continues, availability will become a problem. The instability of jet fuel orices makes it very challenging to move around.”
De Klerk cited a recent return flight from Lanseria to Cape Town via St Helena to collect a medical emergency patient with air ambulance, where jet fuel prices jumped by six rand ($0.355) a litre to R24/litre within 10 hours between the outbound and return legs.
“We now have to be very careful of how far ahead you quote for jobs otherwise you can quote short and lose money instead of making money,” he said.
Jet fuel prices in north‑west Europe have surged to record highs near $239 a barrel since the conflict began, according to LSEG data.
Asian jet fuel prices are approaching $200 a barrel, close to recent records.
African carriers feel those increases more acutely than most. Jet fuel accounts for between 30% to more than 40% of operating costs, compared with a global average of 20% to 25%, according to the African Airlines Association.
South African low‑cost carrier FlySafair said in a statement that jet fuel usually makes up 50% to 55% of its direct operating costs.
At current prices, it estimates an additional cost of about R35,000 per flight hour ($2,071) for each of its 37 Boeing 737‑800 in operation, which can do up to 165 flights a day.
The airline said coastal airports in South Africa saw jet fuel prices rise by 70% in a single week.
The price shock comes as physical stocks across Africa shrinks.
The Board of Airline Representatives of South Africa said domestic jet fuel stocks can serve for the next three to four weeks.
Kenya had around 50 days of jet fuel stocks as of March 10, while Zambian government said the country has 10 days of jet fuel stocks, warning against panic buying and hoarding by industry players.
Airlink Chief Executive de Villiers Engelbrecht said the airline has enough fuel for the remaining part of March and April, but uncertainty grows beyond that.
“Shock price adjustments tend to be more immediate, while stock shortages are more predictable and, in theory, easier to manage,” Engelbrecht said.
