Chevron CEO: Aviation industry issues will ‘probably get worse’ amid Iran war
Chevron CEO Mike Wirth predicted that aviation industry issues will worsen due to jet fuel shortages caused by Iranian restrictions on shipping through the Strait of Hormuz. The price of jet fuel has risen, leading to flight cancellations and fare hikes by international and domestic airlines.
Chevron CEO Mike Wirth stated that the aviation industry will likely face worsening issues due to jet fuel shortages. Iranian restrictions on shipping through the Strait of Hormuz have halted jet fuel exports from Middle East refineries, which supply 75% of Europe's imported jet fuel. The global price of jet fuel has been affected, with the US price surging from $2.50 to $4.19 per gallon. In response, airlines have cut flight schedules and increased fares. United Airlines and Delta Air Lines have scaled back their schedules, with United cutting 5% of planned routes. Wirth predicted that fares will be most broadly impacted, with flights potentially being less abundant and more full.
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