Airlines to spend US$133 billion on jet fuel in 2022 – IATA

The International Air Transport Association (IATA) has projected that airlines will spend US$133 billion more on jet fuel in 2022 than last year.

The projection is based on the elevated price of jet fuel on the international market over the past two years.

The soaring price of Jet fuel is driven primarily by a shortage in refined products due to the removal of Russian crude supply from the global markets. On the international market, jet fuel prices ended last week down 0.8% at $139.5/bbl.

Speaking at the Aviation Africa Summit in Kigali this week, Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East said the outlook post-COVID-19 is positive but the elevated price of jet fuel will remain a challenge for airlines.

“The outlook is positive, but the business environment is challenging. The unprecedented price of jet fuel, which is currently trading at a $50-a barrel premium over crude, is the biggest obstacle.

“For the year to date, the price of jet fuel has averaged $143 a barrel. This means airlines will spend $133 billion more for fuel in 2022 than they did last year,” Mr. Alawadhi said.

In Ghana, experts say, an increase of 10-15% in average fares paid by travelers is inevitable, as airlines have to increase revenues to keep up with the increase in jet fuel prices this year.

In Ghana, which imports all of its aviation fuel despite being oil-producing nation in Africa, jet fuel is selling for about US$1.2 per liter compared to US$0.65 in January.