Jet fuel enough, major airlines assure travelers
Two of the Philippines’ largest airlines on Wednesday sought to quash fears that a global oil crunch driven by the Iran war would disrupt operations, assuring travelers that they have sufficient jet fuel reserves.
Flag carrier Philippine Airlines (PAL) said it has secured enough jet fuel “for the foreseeable future,” including the requirements for long-haul flights.
Budget carrier Cebu Pacific, on the other hand, said its current fuel stocks would last until the end of April.
Their assurance comes as jet fuel prices continue to climb, nearly doubling to $197 per barrel as of March 20 from $99.40 per barrel before the Iran war, according to the International Air Transport Association’s jet fuel price monitor.
“PAL has secured sufficient jet fuel supply to support scheduled operations, including long-haul flights, for the foreseeable future,” the Lucio Tan III-led carrier said, adding it is “closely monitoring” developments in the Middle East.
Air travel has come under pressure since the United States and Israel launched joint strikes against Iran on Feb. 28, triggering retaliatory attacks that have disrupted passage through the Strait of Hormuz, a key route for about a fifth of global oil supply.
President Marcos had warned that grounding planes in the Philippines is a “distinct possibility” if fuel shortages worsen, adding in a Bloomberg News interview that long-haul travel could become “a much more serious problem.”
Yet PAL president Richard Nuttall said the airline is “not too worried” about its long-haul operations, citing confidence in fuel availability in key markets.
“‘Most of our long-haul flights are [going] to the US and Canada, and I think we’re reasonably confident that those countries will not be running out of jet fuel,” Nuttall said in an interview with CNBC. “But obviously, we need to make sure that within the country, we manage the supply longer term.”
For its domestic and regional operations, Nuttall said, “Our understanding is that we have jet fuel for the next couple of months. He added, “For domestic, we source our own fuel, and we have shipments coming in that we’ve secured that keep us going until the end of June.”
For its part, Cebu Pacific said it is already working to secure fuel supplies for May and beyond.
Bracing for impact
Even as airlines say their fuel reserves remain sufficient, travelers are likely to brace for the impact of the crisis, which may be felt through higher fuel surcharges and flight disruptions.
Responding to the oil supply crunch, the Civil Aeronautics Board has allowed airlines to impose a fuel surcharge of up to P787 for domestic flights and as much as P6,208.98 for international flights from April 1 to April 15. These were more than double the rates permitted in March.
Cebu Pacific has suspended several international flights through October, including services to Bangkok, Singapore and Hanoi, citing global fuel prices that it said “have more than doubled compared with 2025 averages.”
The Gokongwei-led carrier has likewise reduced weekly frequencies on routes such as Jakarta, Kuala Lumpur, Melbourne and Sydney. However, it said the rest of its network would operate as scheduled.
PAL, for its part, has not announced broad changes to its international network despite the evolving situation, although it has extended suspensions of select Dubai and Doha services through April 30.
Looking ahead, Nuttall said PAL may need to pass on higher costs to consumers for now.
“If we can pass on the higher fuel charges, or in terms of higher fares, and the market can pay for it, then we’re okay,” he said. “Obviously, we’d much rather that this conflict finishes and the fuel prices gradually come down.”
Cebu Pacific has also expressed confidence that it could weather the disruption.
