The war in Iran does not seem to come to an end any soon. The Strait of Hormuz is closed. And the blockade of the strait that connects the Persian Gulf and the Gulf of Oman has a a great impact on international oil and gas markets. This directly affects the economies of countries all around the world. Countries of the Gulf region are significant stakeholders involved in the trade of fossil fuels. Therefore, the ongoing energy crisis is not only evident in high gas prices. But its effects are also very likely to show in civil aviation.
Not much of an energy crisis in Spain
While energy prices rise and costs of transport increase, Spain proves to be a role model regarding their dealing with the current energy crisis. Natural gas plays a huge role in energy generation in European countries such as Germany, Italy, and the Netherlands. Instead, Spain built a more diversified and electrified energy system by a quick expansion of renewable energy.
In consequence, Spain suffers less from price fluctuations in fossil fuels. Compared to other European countries, the energy and especially gas prices in Spain did not increase as much. This is also due to the reduction in the sales tax on gasoline.
The kerosene emergency
Yet, it seems that the most urgent problem right now is the possible shortage of kerosene. The International Energy Agency warns that the jet fuel might run out till the end of May. Therefore, airlines put pressure on governments and spread panic in the news. They already announced possible flight cancellations as well as widespread price increases.
In fact, Spain – one of the most popular destinations for holidays – has also announced these changes. The Spanish low-cost airline Volotea is canceling domestic flights in Spain. And people fear that their summer holidays are going down the drain.
Holidays not yet at risk
However, most of the big airlines in Europe, like Ryanair, buy their jet fuel years in advance. Yes, domestic flight routes, that are easily replaced by taking a bus or the train might get canceled. But flights that cover longer distances are very likely not at risk.
Therefore, there is no need to worry about already booked summer vacations. However, according to Gonzalo Escribano, Director of Energy and Climate at the Royal Spanish Elcano Institute, prolonged conflict in Iran could eventually lead to supply shortages.
Nevertheless, Spain is handling the crisis well. To focus on renewable energy will be more cost-effective in the long run, according to energy finance experts such as Gerard Reid. Wind turbines and solar panels do not depend on global political crises. Once built, they produce climate-friendly energy independent from other countries’ moods. This could maybe work as some sort of wake-up call. Instead of blindly relying on fossil fuels as they always did, governments should consider progressive solutions to face disasters in the future.
