African Airlines Face Rising Fuel Costs Amid Middle East Disruption
Airlines across Africa are facing mounting operational pressure as jet fuel prices surge following supply disruptions linked to tensions in the Middle East.
The crisis has exposed the continent’s heavy reliance on fuel imports routed through the Strait of Hormuz, with an estimated 70 per cent of Africa’s jet fuel and kerosene supplies passing through the chokepoint.
Since late February, shipments from Middle Eastern refineries have slowed significantly, removing a substantial share of global oil and liquefied natural gas supply from the market. This has triggered sharp price volatility, leaving airlines struggling to manage rapidly rising costs while maintaining flight operations.
Industry players say the unpredictability of fuel pricing is creating major challenges. Airlines are often forced to renegotiate fuel costs upon arrival at different destinations, with prices fluctuating within hours. In some cases, operators have reported steep increases in jet fuel prices within a single day, significantly affecting operational budgets.
Jet fuel prices in north-west Europe have climbed to near-record levels of around $239 per barrel, while prices in Asia are approaching $200 per barrel. African carriers are particularly vulnerable, as fuel typically accounts for between 30 and 40 per cent of operating costs—well above the global average.
The strain is already being felt by airlines such as FlySafair, where fuel can account for more than half of direct operating expenses. The airline estimates a significant rise in per-flight costs due to current price levels and has introduced temporary fuel surcharges to offset the impact.
Meanwhile, Airlink has indicated it will continue adjusting fares in response to rising costs and may reduce flight capacity if necessary to manage expenses.
Beyond rising prices, concerns are growing over dwindling fuel reserves across the continent. In Zambia, authorities have indicated that jet fuel stocks could last for only around 10 days, while South Africa and Kenya are also monitoring limited reserves.
Africa’s limited refining capacity has further compounded the crisis. Many countries rely heavily on imported refined fuel, as local refineries are either insufficient or operating below capacity. This structural challenge has left the region highly exposed to global supply shocks.
The situation has been exacerbated by rising global oil prices, with benchmark crude trading at its highest levels since 2022. Analysts warn that if the Middle East conflict persists, both fuel shortages and higher airfares could become unavoidable.
Globally, the disruption is also affecting supply chains in Europe and Asia, although some regions are better cushioned due to higher fuel reserves and protective policy measures.
As the crisis unfolds, African airlines are adopting defensive strategies, including fuel surcharges, flexible pricing models and operational adjustments. However, industry experts caution that sustained disruptions could have wider implications for air travel, trade and tourism across the continent.
With demand for air travel remaining strong, the sector’s ability to navigate ongoing volatility will be critical in sustaining connectivity and supporting economic activity in Africa.
Source: AfricaBusiness.com
