Europe Faces Jet Fuel Shortfall as Demand Rises, IATA Says

Europe is confronting a persistent and widening jet fuel supply deficit, driven by declining domestic production and steadily rising demand, the International Air Transport Association (IATA) warned. According to the organization, by 2025 imports will account for roughly one-third of Europe’s total jet fuel consumption—a proportion expected to continue growing.

“The progressive closure of refineries and the decline in domestic jet fuel production have increased Europe’s reliance on imports, jeopardizing energy security for the aviation sector,” IATA stated.

A key factor behind the deficit is the age and low efficiency of many European refineries. Rising operational costs and stricter environmental regulations have made it difficult for older facilities to compete with modern refineries in other regions. “Several installations have closed in recent years, exacerbating the imbalance between production and demand,” IATA noted.

While demand for ground transport fuels, such as gasoline and diesel, has plateaued, jet fuel consumption continues to rise. This divergence is creating logistical bottlenecks and strategic vulnerabilities in the supply chain, requiring urgent attention from governments and industry stakeholders.

In this context, Sustainable Aviation Fuel (SAF) is positioned as a potential solution. Though currently more expensive than conventional jet fuel, SAF could reduce Europe’s exposure to global hydrocarbon market risks while supporting decarbonization efforts. “Despite its higher costs, strategic adoption of SAF can strengthen regional energy resilience,” IATA emphasized.

Experts underscore that developing a competitive SAF industry requires robust policy frameworks, long-term incentives, and clear regulatory signals to de-risk investment. “A strong regulatory framework and broad collaboration between public and private actors are essential, not only in Europe but also in regions facing similar jet fuel supply challenges,” IATA added.