Economy

Aviation fuel price increased by 70 per cent

The International Air Transport Association has said the price of jet fuel has continued to increase in recent weeks, with its price increasing by 70 per cent since the start of 2021.

According to IATA, the Switzerland-based trade organisation representing over 290 international airlines, the increase in Jet A1 price is putting pressure on airlines’ operating costs and threatening the industry’s profitability.

IATA said jet fuel price continued to trend upwards in recent weeks as economic activity restarted around the world and supply remained tight.

The association disclosed this in its ‘Airlines Financial Monitor’ which was released on Tuesday.

It added that as of early November, jet fuel price was 70 per cent higher compared to the start of the year.

The association said, “Monthly jet fuel price and Brent crude oil price continued to climb higher in recent weeks, and are currently well above pre-crisis 2019 levels.

“At the beginning of November, the price per barrel of jet fuel was at US$96.1, +70% year-to-date. The price increase has been driven by swiftly recovering demand as markets reopen around the world and economic activity restarts. Meanwhile, supply has remained tight since an increase in OPEC+ production has been slow.

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