REPORT SHOWS JET FUEL PRICES DOUBLED SINCE WAR BEGAN
Global jet fuel prices have more than doubled since the war in the Persian Gulf began, International Air Transport Association (IATA) data showed, forcing airlines to increase fuel surcharges or cut services.
IATA’s Jet Fuel Price Monitor for the week ending March 27 shows worldwide average jet fuel prices now sit 104% above where they were last month, now selling at an average of $4.65 a gallon worldwide.Asia and Oceana have seen the biggest increase, with the jet fuel price up 134% over the same period, to almost $5 per gallon.North America has shown the smallest increase, up about 88% over the past month.A smaller twin-engine commercial jet, such as an Airbus 320 or Boeing 737, burns around 750 to 900 gallons of fuel per hour, with long-haul jets like the Boeing 787 or Airbus A350 burning 1,500 to 2,200 gallons per hour, according to American bulk fuel distributor Premier Petroleum.Airlines, which see about 30% of their costs devoted to fuel, are being hit harder than other oil consumers as the price of Brent crude is only up about 60% since the war began.The “crack spread” –– the difference between the price of crude and refined jet fuel –– has increased 231% in the past month and 287% in the past year, the IATA report said.Airlines have been responding by increasing prices, through surcharges, and by reviewing flight routes.