Report: Jet fuel pipeline constraints could drive up airfares, fight cancellations

The Consumer Energy Alliance has released an analysis warning that inadequate jet fuel pipeline capacity risks creating supply shortages at airports nationwide. 

This could lead to higher airfares, increased flight cancellations, and economic disruption for the 10 million Americans whose jobs are supported by aviation and its 5% contribution to the U.S. GDP.
 
The report, “Fueling Flight: The Hidden Impact of Jet Fuel Constraints on Consumers,” examines America’s jet fuel distribution system, which currently supplies at least 1.7 million barrels per day to support the 27,000 flights taken daily. With passenger demand projected to grow 27%-29% at airports over the next decade, pipeline infrastructure investment is needed to prevent widespread service disruptions.

“Without decisive action, passengers will face fewer flight options, higher costs, and more delays as airlines struggle with fuel shortages,” Consumer Energy Alliance President David Holt said in a release. “The nation’s aviation system runs on an aging fuel infrastructure that lacks adequate capacity and requires government support for critical upgrades.”

Recent incidents have demonstrated the system’s vulnerability. The 2021 Colonial Pipeline cyberattack forced airlines along the Eastern Seaboard to truck fuel in to minimize flight interruptions, while a 2022 San Diego pipeline leak forced the airport to implement fuel rationing for 16 days over the holidays.

For every additional penny paid to ship a gallon of jet fuel over and above the pipeline transportation price, operating costs would rise by an estimated $150 million, the report finds. Additionally, trucking and rail transportation create new logistical challenges. For example, without pipeline access, Hartsfield-Jackson Atlanta International Airport alone would require 300 trucks per day traveling over 500 miles from Gulf Coast refineries.

“Affordable, reliable energy is all about making sure we have enough energy when we need it and where we need it. That is just about everywhere in the U.S. when it comes to keeping the nation flying,” Holt said. “Aviation is simply too critical to our economy to do anything less than anticipate the forecasted demand and move swiftly to meet it with government and the private sector working together.”