Pending the completion of a new fuel farm, expected in mid-2028, which is set to increase total capacity to 30,000m³ – more than four times the current level – Luxair is currently operating with between three days’ worth of reserves and sufficient supply coverage. Photo: Romain Gamba/Paperjam/Archive

Pending the completion of a new fuel farm, expected in mid-2028, which is set to increase total capacity to 30,000m³ – more than four times the current level – Luxair is currently operating with between three days’ worth of reserves and sufficient supply coverage. Photo: Romain Gamba/Paperjam/Archive

With stocks limited to three days and restrictions imposed by the Nato-owned network, the supply of jet fuel at Findel appears to be under strain. Whilst Luxair remains protected in the short term thanks to its hedging policy, operating margins could come under pressure in the event of a prolonged crisis.

The issue of a potential kerosene shortage in Luxembourg arises against a backdrop of supply pressures, where military constraints and logistical dependence are intertwined. According to a government response to a parliamentary question tabled at the end of March, Findel’s current capacity relies on limited storage, equivalent to around three days’ average consumption.

This level of stock, which fluctuates daily depending on inflows and outflows, forms part of a supply system that relies on the Central European Pipeline System (CEPS), a network of pipelines operated by Nato. In the current context, volume restrictions have been imposed by the Alliance, reflecting the priority given to military requirements.

This structural framework imposes an exogenous constraint on civilian operators. CEPs acts as a transport provider, whilst Luxfuel manages the receipt, storage and distribution of fuel at Findel. The kerosene itself belongs to the airlines, which purchase it from oil suppliers, but its availability depends directly on the network’s capacity to transport the necessary volumes.

Coverage… and operational constraints

In this context, Luxair appears to be relatively well-protected in the short term. The airline states that it has “substantial” fuel hedging in place for 2026, which limits its immediate exposure to rising prices. This strategy mitigates the immediate financial impact, though it does not eliminate future risks should the current tensions persist.

At this stage, no significant impact on Luxembourg’s connectivity is anticipated. However, the operational constraints are very real and affect all operators at Findel, including Cargolux and third-party airlines. Alternative solutions, such as refuelling at other airports (“tankering-in”) or by road, remain limited by technical, logistical and regulatory constraints.

Furthermore, Luxair’s exposure to kerosene risk is not limited to the national territory. Around half of its refuelling operations take place at overseas stopovers, which makes the airline dependent on developments in supply conditions at European and global level.

In the medium term, the main means of mitigation lies in increasing storage capacity. A new “fuel farm”, due to be completed by mid-2028, is expected to bring total capacity to 30,000m³, more than four times the current level.

Until this increase in capacity is achieved, the risks remain fluid. Should the situation worsen, the authorities cannot rule out increased pressure on operating costs, a reduction in operational flexibility and, ultimately, a more significant impact on the robustness of flight schedules.