Aviation Fuel Risk Evolves Beyond Price to Encompass Supply and SAF Transition
The traditional aviation industry focus on managing jet fuel price volatility is no longer sufficient. A new, more complex risk landscape is emerging, driven by geopolitical instability impacting supply chains and logistical challenges. The critical transition to Sustainable Aviation Fuel (SAF) introduces significant new variables, including uncertain production scalability and infrastructure readiness. Consequently, airlines must develop more holistic risk management strategies that account for physical supply security, not just financial hedging. This expanded risk profile elevates fuel management from a purely financial concern to a core strategic and operational imperative.
Official Source: https://www.ey.com/en_in/insights/consulting/why-aviation-s-fuel-risk-is-no-longer-just-about-jet-fuel-pricing