Booming Russian airlines leave Kazakh carrier short of jet fuel

Air Astana, Kazakhstan’s flagship carrier, said a scarcity of jet fuel is threatening its operations in the Central Asian nation as Russian rivals suck up supplies. “Regular air service in Kazakhstan is in jeopardy,” Air Astana said Monday in a statement, citing lower fuel deliveries from Russia. Four suppliers -- Gazprom Neft PJSC, Rosneft PJSC, Lukoil PJSC and Tatneft PJSC -- have sent an average of 15,000 tons a month this year, down from 44,000 tons in 2016, it said. Russian airlines are booming as cheaper fuel and an economic recovery spur travel. Passenger volumes in August expanded more than 16% year-on-year and shares of No. 1 carrier Aeroflot PJSC rose to a record the previous month. But increased demand for fuel has had a knock-on effect on neighboring Kazakhstan, which relies on Russia for about 70% of its jet fuel, according to Air Astana. Gazprom Neft has given notice that fuel exports won’t resume until next May, the Kazakh carrier said. The Russian company said it hasn’t broken any contract. “The 2017 summer season has seen unprecedented and unpredictable growth” in the volume of air transport and jet-fuel consumption in Russia, Gazprom Neft said. The St. Petersburg-based company has increased fuel production at its refineries to keep domestic supply uninterrupted, it said.<br/>