Soaring Fuel Prices Impact Global Aviation Industry; China's Nuclear Power Installed Capacity Jumps to First Globally
（2026/04/13—2026/04/19）
Author：Hao-Wang
International Energy News
1. Soaring Fuel Prices Impact Global Aviation Industry
Recently, affected by the situation in the Strait of Hormuz, aviation fuel prices have continued to rise. Fuel accounts for about 25% to 30% of airlines' operating costs. This oil price surge has significantly squeezed the industry's profit margins, with the global aviation industry's annual losses projected to reach at least $25 billion.
To cope with immense cost pressures, numerous airlines are taking measures such as cutting routes and raising ancillary fees like checked baggage charges. Currently, U.S. airlines face relatively less pressure compared to their European counterparts. However, since passengers typically purchase tickets in advance, the impact of fuel price hikes on terminal ticket prices has a delayed effect. It is expected that the increased costs will gradually be passed on to consumers in the coming months.
2.IEA Warns: European Aviation Fuel Reserves May Only Last 6 Weeks
Recently, the International Energy Agency (IEA) warned that due to energy supply disruptions in the Strait of Hormuz, European aviation fuel reserves may only last for about six weeks, posing a severe risk of flight cancellations. This conflict could trigger an unprecedented global energy crisis, leading to across-the-board surges in gasoline, natural gas, and electricity prices. The crisis will first severely hit developing countries in Asia, Africa, and Latin America, before spreading to Europe and the Americas.
Furthermore, the agency strongly opposes the implementation of a "toll booth" system for vessels passing through the strait, fearing it could set a dangerous precedent for other critical waterways like the Strait of Malacca. As the scale of losses in oil and other energy supplies continues to expand in April, global inflation will be pushed further up, economic growth in multiple countries will be thwarted, and energy rationing may soon appear in some nations.
3. Middle East War Forces South Korea to Accelerate Energy Transition
Affected by the Middle East war, South Korea is facing a major turning point in its transition from fossil fuels to renewable energy. The country has pledged to significantly increase its renewable energy installed capacity to 100 gigawatts by 2030, with a focus on developing and subsidizing wind and solar energy.
To address short-term energy shocks, South Korea will postpone the shutdown of two coal-fired power plants and restart a nuclear power plant to reduce natural gas demand. In addition, the government has not only approved a supplementary budget of 26.2 trillion won to ease price pressures on citizens and businesses but also raised the crisis alert level, implementing an odd-even license plate policy for public vehicles. Given its high dependence on imported energy, South Korea is actively seeking alternative channels, planning to bypass the blockaded strait to import 273 million barrels of crude oil and some naphtha from four countries, including Saudi Arabia, before the end of the year.
Domestic Energy News
1. China's Nuclear Power Installed Capacity Jumps to First Globally
Recently, the blue book China Nuclear Energy Development Report 2026 revealed that China's total installed nuclear power capacity has reached 125 million kilowatts, with the scale under construction accounting for more than half of the global total, ranking first worldwide. This milestone signifies that China's power system is accelerating the decarbonization process of baseload power, shifting the ballast of energy security toward non-fossil energy, and promoting the deep coupling of nuclear power and renewable energy.
Moreover, the robust supply of nuclear power can provide definite energy security for new quality productive forces, such as high-end manufacturing and computing infrastructure, while driving the deep evolution of the domestic industrial chain. While the peak in scale poses higher demands on domestic safety management and nuclear waste disposal, it also means the global center of gravity for nuclear technology is rapidly shifting eastward. China will assume greater responsibilities in global climate governance and the formulation of international energy rules.
2. National Carbon Market Expansion Pushes Up Carbon Prices; CCER Inversion May Ease with Increased Supply
In April, the price of China Emission Allowances (CEA) in the national carbon market rose steadily to approximately 80 yuan/ton. Influenced by tightening allowance benchmarks and expectations of future paid allocations, bullish market sentiment is strong, making carbon asset management a rigid demand for enterprises.
Regarding the current "inversion" phenomenon where the price of China Certified Emission Reductions (CCER) has surpassed that of CEA, industry insiders point out that this is due to the carbon market's expansion sparking a surge in compliance offset demand, coupled with a limited issuance of CCER and enterprises' reluctance to sell CEA. In the future, as more CCER projects are approved, the easing of supply-demand contradictions will drive its price to converge with CEA, allowing it to function as a pressure relief valve.
Currently, the national carbon market covers high-energy-consuming industries such as power generation and steel, controlling over 60% of the country's carbon emissions. In the future, it will expand to sectors like petrochemicals and civil aviation, comprehensively launching an industrial carbon cost revolution.
3. Widening Aluminum Shortage in New Energy Industry Prompts Chinese Aluminum Enterprises to Accelerate Transition
Recently, affected by geopolitical conflicts in the Middle East and Guinea's plans to restrict exports, the global aluminum market is expected to see a shortage of about 900,000 tons in the second quarter. As a core material for industries like photovoltaics and new energy vehicles, aluminum prices have hit a new high in recent years, significantly boosting the performance of domestic aluminum companies.
Faced with the dual challenges of high dependence on bauxite imports and high energy consumption, China's aluminum industry is accelerating the restructuring of its production landscape. To ensure the security of the new energy supply chain, companies are vigorously improving the recycled aluminum recovery system while advancing overseas mining projects. Additionally, to achieve peak carbon emissions, a large amount of electrolytic aluminum production capacity is actively shifting to hydropower-rich regions, with active deployment of clean energy like wind and solar power to increase the proportion of green electricity consumption. Through resource recycling and green electricity substitution, the domestic aluminum industry is effectively mitigating global supply risks with its low-carbon transition.
(Main news sources: CCTVNEWS APP, International Energy Network, China Energy Network, National Energy Administration, China Energy News)
