Jet fuel prices up 83 pct, piling up pressure on airlines: IATA

ISTANBUL

Global average jet fuel prices have surged 82.8 percent over the past month, sharply increasing cost pressures on airlines, according to the International Air Transport Association’s (IATA) latest fuel price monitor.

IATA data showed jet fuel prices rose 11.2 percent week-on-week to $175 per barrel in the latest reporting period. The figures, published under license from S&P Global Energy, reflect average refinery prices for aviation fuel.

On an annual basis, jet fuel prices were up 94.4 percent, highlighting the scale of the recent increase.

The surge follows a 58.4 percent jump in the previous weekly reading, underscoring the rapid pace of market movements.

The spike is expected to weigh heavily on airline margins, as fuel remains one of the industry’s largest operating costs. IATA has noted that sudden price increases tend to be more damaging than sustained high prices, as airlines have less time to adjust fares, capacity and procurement strategies.

The latest rise comes as airlines also face broader disruptions linked to the Middle East conflict, including flight rerouting, suspended services and higher operational costs.

Scandinavian airline SAS said on March 17 it will cancel at least a thousand flights in April after the war in the Middle East sent fuel prices surging.

Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns.

Brent crude prices climbed to as high as $119.5 per barrel following the launch of US-Israeli strikes on Iran on Feb. 28, before stabilizing at around $100.