Bangkok Post
Trade group: Jet fuel prices likely to remain elevated
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Despite optimism around the US-Iran ceasefire and the reopening of the Strait of Hormuz, it will take time for jet fuel prices to return to pre-crisis levels and airfares could remain high for longer than passengers expect, says the International Air Transport Association (IATA).
Key facts
- In recent months, the average jet fuel price was roughly 60-80% higher year-on-year.
- Though the jet fuel price has fallen from its peak of US$220 per barrel to less than $150-160, the decrease was not as sudden as for crude oil, said Mr Hee.
- Despite optimism around the US-Iran ceasefire and the reopening of the Strait of Hormuz, it will take time for jet fuel prices to return to pre-crisis levels and airfares could remain high for longer than passengers expect, says the
- Sheldon Hee, regional vice-president for Asia-Pacific at IATA, said it will take several months for the energy supply chain to normalise and have an impact on the aviation sector.
- IATA is maintaining its forecast of 2.1% net profit margin for Asia-Pacific this year, which is on par with the global margin of 2%.
- IATA expects regional passenger demand growth of 5.1%, exceeding the global average of 2.1%.
Summary
Sheldon Hee, regional vice-president for Asia-Pacific at IATA, said it will take several months for the energy supply chain to normalise and have an impact on the aviation sector.
After the war between the US and Iran started in February, jet fuel prices more than doubled. In recent months, the average jet fuel price was roughly 60-80% higher year-on-year.