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Chevron CEO Mike Wirth warned that difficulties in the aviation industry could intensify in the coming weeks as jet fuel becomes tighter, caused by disruptions related to the Iran war.
Appearing Sunday on CBS News’ “Face the Nation,” Wirth said jet fuel at key locations was already running low before the conflict began, leaving markets vulnerable to supply shocks.
“It’s not flowing today. So, we’re seeing jet fuel going very fast in Europe, Asia, and we’re seeing airlines announcing changes to their flight schedules,” said Wirth. “I think air travel is an area where it’s probably going to get worse over the next few weeks.”
Jet fuel prices have soared since late February, reflecting restrictions on shipping through the Strait of Hormuz – a key transit point through which nearly one-fifth of the world’s oil traffic passes.
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Chevron CEO Mike Wirth. (Ronaldo Schemidt/AFP via Getty Images)
US jet fuel prices rose from $2.50 per liter before the dispute to $4.19 per liter as of April 24, according to Airlines for America. Globally, prices remained volatile, with the International Air Transport Association reporting that they fell 6.7% week-on-week to $184.63 per barrel, as supply pressure continued.
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Airlines are already adjusting operations to cope with higher fuel costs. United Airlines said it plans to cut about 5% of its planned capacity this year, while Delta Air Lines has cut growth plans by about 3.5 percent.
US jet fuel prices rose from $2.50 per liter before the crash to $4.19 per liter as of April 24. (Giuseppe Cacace/AFP via Getty Images)
Fuel typically accounts for about a quarter of an airline’s operating costs, leaving carriers highly exposed to price fluctuations. As a result, airlines are cutting low-cost routes and relying on higher fees and charges to offset rising costs.
Consumers are starting to feel the impact. Data from the Bureau of Labor Statistics show air fares rose month-over-month in March, a trend that could accelerate as carriers weather higher fuel costs and reduce capacity heading into the hot summer season.
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Wirth said the main problem remains the disruption of energy flows in the Strait of Hormuz. Reduced shipments from Middle Eastern refiners, which provide a large share of the world’s jet fuel, have strengthened supplies across Europe and Asia.
Delta Air Lines flight in March 2026. (Kevin Carter/Getty Images)
He added that the global energy system has lost a lot of flexibility, with assets that used to act as “shock absorbers” now depleted after weeks of disruption.
“Risks like this are very high right now,” Wirth said, noting that even if the flow resumes, it may take some time for supply chains and inventory to normalize.
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In the meantime, airlines and travelers are likely to continue to feel the effects, as higher fuel costs increase flight schedules, prices and availability.
Reuters contributed to this report.
