Chevron CEO predicts air travel prices to increase due to fuel shortages

Chevron CEO Mike Wirth predicted on Sunday that the aviation industry will continue to experience fuel shortages over the next few weeks. Wirth claims that due to current restrictions on shipping through the Strait of Hormuz, jet fuel availability is tightening quickly in Europe and Asia. Before the conflict began, jet fuel inventories were at a typical seasonal low and had not been replenished once it began. Middle East refineries are considered large exporters of jet fuel, typically producing 75% of Europe's imported jet fuel. "We're seeing it flow through into fares," said Wirth to CBS News. "I think that's one of the first places it will be felt most broadly. I mean, we've seen some upward pressure on gasoline prices now. I think aviation is clearly an area where it's going to probably get worse over the next few weeks. He states that airline fares are going to rise in price, but the availability of flights will drop. In the week of April 24, the global average price of jet fuel fell 6.7%, according to the International Air Travel Association. Fuel average in the U.S., in comparison, has jumped from $2.50 per gallon before the conflict to $4.19 per gallon on Friday, according to the Argus U.S. Jet Fuel Index. RELATED STORIES: Aviation fuel prices spike across the board in March February fuel prices show first 100LL increase in months as SAF pattern emerges Abby's Ramp Ramble - FBO Takeoff: Cleared for Profit I can't predict how the airlines are going to price their product, but I think the upward pressure that they're seeing on prices and the tightness in the market is likely to lead to further route optimization," said Wirth. "And so flights may not be as abundant as they otherwise would have been. I think planes will probably be more full than they would have been. And yes, fares could be higher."