BermudAir is striving to stay nimble in the face of a jet fuel crisis that it sees bringing both challenges and opportunities.

The boutique Bermudian airline told The Royal Gazette it is closely monitoring the volatility in fuel markets.

The continued closure of the Strait of Hormuz in Iran — through which about 20 per cent of global oil supplies are normally transported — has resulted in a worldwide jet fuel shortage. In the last month the price of a barrel of jet fuel has gone from around $80 a barrel to about $200.

“Fuel is one of the largest components of our cost base, so fluctuations do have an impact,” a spokeswoman for BermudAir said.

The company has seen upward pressure on fuel pricing, just as other airlines have.

“While specific price points can vary by market and contract structure, there is no question that higher fuel costs create headwinds,” the spokeswoman said. “That said, we actively manage procurement and maintain flexibility in our network to mitigate those impacts as much as possible.”

The airline is focused on maintaining a stable and reliable schedule for its customers.

“We are not making reactive decisions based solely on short-term fluctuations,” the spokeswoman said. “Pricing is always reviewed carefully in the context of overall market conditions, but our priority is to continue offering consistent service and value rather than making abrupt changes.”

BermudAir added that it takes a disciplined approach to capacity, routing and operations to manage through touch periods without compromising reliability for customers.

“Our fuel supply is a combination of uplift in Bermuda and at our United States destinations,” BermudAir stated. “Like most airlines operating international routes, we optimise where we take on fuel based on operational efficiency, pricing and logistics.”

The firm also said in any period of disruption there can be opportunity for well-positioned airlines.

“BermudAir was created to provide consistent, direct connectivity to Bermuda and if others adjust capacity, we are ready to support demand where it makes sense,” the company added.

So far, the airline has not seen any material shift in booking behaviour tied to the fuel market uncertainty.

“Travel demand to and from Bermuda remains resilient and customers continue to prioritise reliable service and convenient schedules,” BermudAir stated.

Elsewhere, Lufthansa has cancelled 20,000 flights to protect itself from the soaring cost of oil and American Airlines has raised its checked-bag fees.

Turkish economist Fatih Birol at the International Energy Agency in Paris, France, has warned that this could become the biggest energy crisis ever.

European Union energy commissioner Dan Jorgensen has said: “Even if we do everything we can do, if the jet fuel is not there, then it is not there.”

Advocacy group Airlines UK, which includes British Airways, has asked the British Government to draft an emergency jet fuel plan amid the continued closure of the Strait of Hormuz.