LATAM Cancels 36 Flights Due to Colombia Fuel Shortage

Colombia’s aviation sector is grappling with significant disruptions due to a fuel shortage, worsened by an electrical failure at the Cartagena Refinery. This crisis has led LATAM Airlines to cancel 36 flights, with other airlines like Avianca also indicating potential schedule changes. Despite these issues, the Colombian government maintains that there is no overarching fuel supply crisis.

The Latin American and Caribbean Air Transport Association (ALTA) has urged the Colombian government to treat the aviation fuel shortage as a critical issue. ALTA recommends allowing the import of Jet A1 fuel to reduce costs and ensure a consistent supply, emphasizing the vital role of aviation in maintaining national and international connectivity.

ALTA pointed out that Colombia’s aviation sector is crucial for linking over 200 cities, supporting 4 million tourists, and accommodating the daily travel of over 120,000 passengers through major airports.

With 52 flights taking off or landing every hour and daily fuel consumption surpassing 1 million gallons, ALTA has called for greater transparency in capacity planning and inventory management. The association noted that fuel costs represent approximately 35% of an airline's operational expenses and warned that high costs of imported fuel could lead to increased airfares, negatively affecting travelers.

“Allowing the importation of Jet A1 fuel would foster competition, lower costs, and improve fuel availability, benefiting the entire market,” ALTA stated. 

IATA reported that the crisis began with a production cut at the Cartagena Refinery due to an electrical failure on Aug. 16. Initial reports suggested an 8% reduction in fuel delivery, which was later adjusted to 5%.

IATA has suggested mitigation strategies such as fuel tankering, which involves loading extra fuel at the origin airport to ensure sufficient supply at the destination. However, this method faces challenges, including the need for real-time inventory data and infrastructure constraints at some Colombian airports.

LATAM Airlines Colombia has been notably affected, with aviation fuel stocks at airports in Leticia, Montería, and Bucaramanga running low, and Bogotá's fuel levels also reaching critical levels. LATAM has introduced contingency measures, including carrying extra fuel on international flights, modifying operational procedures, and closely monitoring fuel usage at each airport.

The airline, in collaboration with other carriers, is working with Colombia’s Civil Aviation Authority, the Superintendence of Transport, the Ministry of Mines and Energy, and Ecopetrol to manage the crisis while awaiting the delivery of imported fuel, expected between Aug. 31 and Sep. 2.