'Europe has to fight for every cargo of jet fuel to come,' says Argus strategist

• There is no immediate jet fuel shortage in Europe yet, but it's expected to hit gradually if the Rhine doesn't reopen.
• Airlines are canceling flights due to anticipated unprofitability from high fuel costs, with Europe in a bidding war against Asia and Australia for US and Nigerian jet fuel.
• Demand destruction is expected over the summer as jet fuel stocks fall, and hedging policies will not fully protect airlines from rising costs.

The discussion centers on the looming jet fuel shortage in Europe, driven by the Rhine's closure and a global bidding war for supplies. While no immediate shortage is felt due to existing stocks, airlines are preemptively canceling flights due to anticipated unprofitability. This situation is expected to lead to demand destruction and higher ticket prices, impacting both airlines and consumers across Europe and the US.