That's the point. It can create ethanol or any number of hydro-carbon based fuels. Why is a jet engine a stretch? Jet fuel is pretty much really high quality diesel fuel with additives. If you can already make diesel it makes sense that that could be made into jet fuel.Yep, I saw that in the article, but it also mentions "Jaguars and jet engines". Granted, there are apparently Diesel-fueled Jaguars, but jet engine is still a stretch despite the existence of multi-fuel tank turbines.
The organism they created can create ethanol OR diesel fuel. It is not just ethanol. That's part of the reason it's such a significant discovery.