American Airlines planes at LaGuardia Airport
Leslie Josephs | CNBC
Jet fuel becomes more expensive nationwide, particularly in the New York City area, as the Colonial Pipeline failure continues.
The New York Harbor jet fuel price premium was nearly $ 1.87 a gallon on Tuesday, nearly 9 cents more than the US Gulf Coast price, the largest premium since February 2020 and nearly 40% more than before, according to S&P Global a week of Platts.
Several airlines, including Delta Air Lines, United Airlines and JetBlue Airways, said their operations were not affected. However, two airlines have made adjustments. American Airlines added temporary refueling stops on two long-haul flights from Charlotte, North Carolina this week through Thursday. Southwest Airlines flies planes with extra fuel into Nashville International Airport and others, a measure known as tankers that airlines turn to during times of supply shortages, such as after hurricanes.
Airlines and airports this week have been looking for alternative ways to get fuel beyond the Colonial Pipeline, the largest refined fuel pipeline in the country. The company shut down all pipeline operations after being hit by a cybersecurity attack with ransomware on Friday.
“Since being notified of the pipeline’s temporary shutdown, BWI Thurgood Marshall Airport has been working with airline partners and refueling companies to take alternative refueling measures,” a Baltimore airport spokesman told CNBC. “We are continuing to monitor the situation and will adjust the plans as necessary until the pipeline is back online.”
The New York and New Jersey Port Authority, which oversees major airports in the New York City area, said it had “no immediate impact from shutting down the Colonial Pipeline.”
“We are still closely monitoring the situation and are in regular contact with the gasoline and diesel fuel suppliers of the port authority’s vehicle fleet as well as with the airlines and other airport participants about the supply of jet fuel,” said a spokeswoman.
Gulf Coast jet fuel, an industry benchmark, hit $ 1.78 a gallon on Tuesday, its highest level since January 2020. Prices are up 33% this year as more customers return to air travel. The higher fuel prices, generally the airlines’ biggest post-work cost, are also on the rise as more customers are expected to fly in the midsummer travel months.