Swiss Air CEO says no immediate fuel shortage, eyes contingency plans

GENEVA: Swiss International Air Lines has sufficient jet fuel supplies for the next six weeks, its CEO ​told the NZZ newspaper on Saturday, but is exploring ‌contingencies like “tankering” amid industry warnings of fuel shortages tied to the Iran war.

SWISS CEO Jens Fehlinger told the newspaper Neue Zürcher Zeitung that “the forecasts from our ​suppliers – oil companies and refineries – are currently good.”

European airlines ​have warned of potential jet fuel shortages within weeks as a result ⁠of the U.S.-Iran conflict–which has curtailed supply and sent energy ​prices surging–and could disrupt the summer travel season.

“If there were to ​be a shortage of kerosene, it would first be seen in Africa or Asia. We have no signs of that at the moment,” he told ​NZZ.

While the outlook remains stable, Fehlinger said the airline and parent ​company, Lufthansa Group, were working on contingency plans including “tankering,” where aircraft would fill ‌up ⁠fully at a destination where there is ample supply, in order to bring additional fuel back to Zurich.

Such practices are currently restricted by regulations but Fehlinger indicated there could be discussions with ​policymakers to reopen ​the possibility.

Another option ⁠is strategic refueling stops at well-supplied airports along flight routes, such as in Vienna for flights ​to Asia, he said.

Fehlinger told NZZ persistently high oil ​prices ⁠would likely feed through to fares over time.

SWISS had insulated itself from recent volatility in fuel markets by hedging about 80% of its ⁠kerosene ​requirements for the year, limiting the immediate ​impact of rising prices.

The airline has experienced only a 20% increase in fuel-related costs ​so far, he said.