Europe’s aviation industry is bracing for a turbulent ride as the ripple effects of the Iran war and the effective closure of the Strait of Hormuz send shockwaves through global oil markets. In a move designed to keep planes in the air and fares from soaring even higher, the European Union is set to confirm a major regulatory shift: airlines across the continent will soon be allowed to use Jet A-type aviation fuel, a staple in the United States but rarely seen in European tanks.
The decision, expected to be finalized on May 8, 2026, comes after mounting pressure from Airlines 4 Europe—a trade group speaking for heavyweights like Deutsche Lufthansa AG, Air France-KLM, and British Airways owner IAG SA. According to Bloomberg, the association petitioned the EU last month to permit the import and use of Jet A-type fuel, arguing that the current reliance on Jet A1 (the European norm) left the industry vulnerable to supply shocks. With the Strait of Hormuz—one of the world’s most critical oil chokepoints—effectively shut, the urgency was impossible to ignore.
“The oil-market chaos has forced us to look at every available option,” an industry insider told Bloomberg, summing up the mood among European carriers. The move is seen as a lifeline, giving airlines access to a broader pool of jet fuel at a moment when every penny counts and every gallon is precious.
Across the Atlantic, American carriers are also feeling the pinch, but the crisis has prompted a different set of maneuvers. Alaska Airlines, a major player with ambitions to expand its international footprint, announced on May 7 that it would raise $1 billion through a combination of a $500 million private debt offering and a new $500 million tranche to an existing loan. The funds, the airline said in regulatory filings, are aimed squarely at weathering the storm of skyrocketing fuel costs.
Alaska Air Group, the parent company encompassing Alaska Airlines, Hawaiian Airlines, Horizon Air, and McGee Air Services, has been hit hard by the price surge. In the first quarter of 2026, the group reported a loss of $193 million—a jump from the $166 million loss in the same period a year earlier. The culprit? A 14% spike in average jet fuel prices, rising from $2.61 per gallon in early 2025 to $2.98 per gallon in the first quarter of this year. And the pain isn’t over: the company predicts fuel costs will skyrocket further to $4.50 per gallon in the second quarter, adding a staggering $600 million to its expenses.
Alaska isn’t alone in its scramble for financial breathing room. JetBlue secured $500 million in April, while American Airlines raised $1.14 billion, with a portion earmarked for new aircraft purchases. But Alaska’s situation is particularly acute, as the company juggles not just rising costs but also its high-stakes push to become a global long-haul carrier. The airline has announced five new international routes from Seattle, with plans for seven more by the end of the decade, leveraging its acquisition of Hawaiian Airlines to spearhead the expansion.
Yet the fuel crisis is forcing difficult choices. Alaska Air has raised baggage fees and trimmed flight schedules to absorb some of the increased costs. Still, the numbers are sobering: the company now expects an adjusted loss per share of $1 for the second quarter and has suspended its financial guidance for the full year, citing “sharp and unpredictable changes in fuel prices.”
“We will get through this financial fuel crisis,” CEO Ben Minicucci told reporters in April, just as the airline was preparing to launch its first nonstop flight from Seattle to Rome. “So we’re not going to hold back and delay implementing our strategy for a short-term impact. When things get back to normal, … when normal comes, we want to be able to punch the accelerator.”
Despite the bravado, the uncertainty is palpable. Alaska Air’s first-quarter loss wasn’t just about fuel. The company also cited unrest in Puerto Vallarta, Mexico, and severe weather in Hawaii—two key markets for the carrier—as factors that dampened demand. But there’s no denying that fuel is the main antagonist in this unfolding drama.
The backdrop to all this is the Iran war and the effective closure of the Strait of Hormuz—a narrow waterway through which roughly a fifth of the world’s oil passes. With tankers rerouted or stranded and supply chains upended, the price of jet fuel has become wildly unpredictable. For European airlines, who have long relied on a steady flow of Jet A1 fuel, the crisis has exposed a vulnerability that regulators and industry leaders can no longer afford to ignore.
The EU’s move to allow Jet A-type fuel is, in many ways, a pragmatic response to extraordinary circumstances. While Jet A and Jet A1 are similar—both are kerosene-based aviation fuels—their specifications differ slightly, with Jet A1 having a lower freezing point, making it more suitable for long-haul flights over polar routes. But with the immediate priority being supply rather than optimization, the regulatory flexibility could prove crucial in keeping European fleets operational.
For passengers, the changes may soon be felt in their wallets and on their itineraries. Higher fuel costs almost always translate into higher ticket prices, and airlines may be forced to cut less profitable routes or reduce frequencies to conserve cash. Already, Alaska Air has trimmed its schedule and hiked baggage fees, moves likely to be mirrored by other carriers if the crisis drags on.
Industry analysts warn that the situation remains fluid. “The aviation sector is facing a perfect storm,” one observer noted, pointing to the confluence of geopolitical tensions, supply chain disruptions, and post-pandemic demand swings. Airlines that can adapt quickly—by securing alternative fuel sources, raising capital, or adjusting their networks—will be best positioned to weather the storm.
For now, the focus is on survival and flexibility. As Alaska Air’s CEO put it, the goal is not just to muddle through but to be ready to “punch the accelerator” when the skies clear. In Europe, the regulatory pivot on jet fuel is a sign that old rules are being rewritten in real time to meet the demands of a new era.
As the world watches the Strait of Hormuz and the oil markets with bated breath, airlines on both sides of the Atlantic are learning the value of adaptability—and the high price of disruption.