Regan Brown
The cost of jet fuel is a significant expense for airlines, and it is one of the primary drivers of airline ticket prices. The price of jet fuel is not the same across the world and can vary by airport, state, and region. For example, on May 11, 2022, the IATA per-gallon price was $4.82 in North America, $4.01 in Europe, and $3.55 in Asia. As of July 2024, the price for a gallon of jet fuel is around $2.39, which is a 42% decrease compared to its post-2019 peak in 2022. However, jet fuel still costs significantly more than it did before the COVID-19 pandemic.
| Characteristics | Values |
|---|---|
| Jet Fuel Price Index | Provided by Platts Jet Fuel Price Index |
| Jet Fuel Price Monitor | Provided by IATA |
| Jet Fuel Price in July 2024 | $2.39 per gallon |
| Jet Fuel Price in May 2022 | $4.82 per gallon in North America, $4.01 in Europe, and $3.55 in Asia |
| Jet Fuel Price in May 2022 in Boston | Between $9.79 and $13.38 per gallon |
| Jet Fuel Price in May 2022 in Oklahoma City | $7.05 per gallon |
| Jet Fuel Price in June 2025 | $90.21/bbl |
| Average Price of Jet Fuel | Calculated based on data from 3,235 FBOs reporting aircraft fuel prices over the past 30 days |
| Jumbo Jet Fuel Cost | £53,500 (€64,300) to fly from London to New York with 450 passengers, which works out to £118 (€141 / $158) per person |
| A380 Jet Fuel Cost | £205,000 to fill an A380 with 315,000 liters of fuel |
Explore related products
What You'll Learn
Jet fuel cost variations
The cost of jet fuel is subject to a variety of factors and can vary substantially. As of July 2024, the price for a gallon of jet fuel was around $2.39, down 42% compared to its post-2019 peak in 2022. However, jet fuel still costs significantly more than it did before the COVID-19 pandemic. The price of jet fuel is a primary driver of airline ticket prices, and the recent high fuel costs incurred by airlines have contributed to expensive tickets.
The cost of jet fuel is not fixed and can vary by airport and state. For example, on May 11, 2022, the IATA per-gallon price was $4.82 in North America, $4.01 in Europe, and $3.55 in Asia. At Boston's Hanscomb Field, jet fuel was priced between $9.79 and $13.38 per gallon, whereas in Oklahoma City, it was as low as $7.05 per gallon.
The price that airlines pay for jet fuel also depends on the quantity of fuel purchased and the details of their contracts. Airlines may purchase a set quantity of fuel at a particular price through a process called "hedging". If an airline stops flying and doesn't use the fuel they've hedged, they still have to pay for it, which can result in financial losses. For example, an A380 aircraft can hold approximately 315,000 litres of fuel, costing around £205,000 to fill. A Boeing 747 Jumbo Jet flying from London to New York burns approximately 70,000 kilograms of fuel, costing around £53,500.
The cost of jet fuel is provided by sources such as GlobalAir.com, which averages prices over thousands of FBOs (fixed-base operators) reporting aircraft fuel prices. However, it is important to note that data from government sources may not always be accurate or complete, and other factors should be considered when planning a flight.
The Impact of Fossil Fuels: CO2 Emissions
You may want to see also
Explore related products
Jet fuel tax
The cost of jet fuel is a significant expense for airlines, and this cost is ultimately passed on to the consumer. While the price of jet fuel fluctuates, the latest data from June 2025 shows that the global average jet fuel price was $90.21 per barrel, a 0.5% increase from the previous week. This price is provided by Platts, a division of S&P Global Commodity Insights, which publishes a daily Jet Fuel Price Index based on assessments of jet fuel spot prices in relevant regional markets.
In the United States, jet fuel prices can vary by region and are influenced by various factors, including supply and demand dynamics, crude oil prices, and operational costs. These prices also do not typically include additives. While jet fuel prices can be monitored through resources like GlobalAir.com, it is important to note that historical price data may not always be available or completely accurate.
When considering the cost of jet fuel, it is also essential to factor in taxes. In the context of jet fuel tax, gross receipts derived from jet fuel sales may be subject to a combined general rate of sales and use tax. For example, in North Carolina, there is a 7.00% combined general rate of sales and use tax on aviation gasoline and jet fuel.
Fuel taxes, such as those levied on jet fuel, serve as a stable and predictable source of revenue for aviation authorities and governments. These taxes are relatively easy to collect and administer, as they are included in the fuel charge and remitted directly to the government. This eliminates the need for a large bureaucracy to collect taxes from individual pilots and aircraft owners. Additionally, fuel taxes are simple to understand and pay, making it difficult for taxpayers to avoid them.
Furthermore, fuel taxes are considered fair as they are based on an operator's use of the system. Smaller aircraft that consume less fuel pay lower taxes, while larger aircraft with higher fuel consumption pay more. This taxation system also incentivizes the adoption of newer, cleaner, quieter, and more fuel-efficient aircraft, helping to reduce noise and congestion. By taxing fuel usage, operators who utilise congested airports requiring increased taxi and air time are effectively penalised, further contributing to the reduction of congestion.
Fuel Pump Replacement: Cost and Considerations
You may want to see also
Explore related products
$39.98 $54.99
Hedging fuel costs
Fuel hedging is a strategy used by some airlines to manage volatile and rising fuel costs. It involves purchasing fuel at a fixed price for delivery at a later date. This allows airlines to stabilise their ticket prices and protect themselves from future price hikes. However, it is a gamble as fuel prices can also decrease, resulting in airlines paying more than their competitors.
The cost of jet fuel accounts for 20-40% of airlines' operating expenses, and fuel prices have been surging in recent years. Fuel hedging helps airlines manage this volatility and maintain stable ticket prices. Airlines like Southwest and Air France-KLM have saved around $1 billion each through fuel hedging.
The approach to fuel hedging varies across the industry. Some airlines aggressively hedge their fuel costs, while others rarely do so. For example, in 2022, Air France-KLM hedged around 72% of its fuel costs for the first quarter, paying around $90 per barrel when prices spiked to $170 per barrel in March. EasyJet has hedged 76% of its fuel requirements for the first half of 2024 at $109.75 per barrel, while Ryanair has secured 85% of its fuel requirements at $89 per barrel.
The cost of fuel hedging depends on the predicted future price of fuel. Airlines can place hedges based on future jet fuel or crude oil prices, as the two are normally correlated. Fuel hedging contracts can be customised, with airlines agreeing to buy or sell a certain amount of fuel at a specified price on a future date. This locks in the fuel cost and protects airlines from price increases. However, if fuel prices decrease, airlines will end up paying above the market rate.
Fuel Consumption of Semi Trucks: How Much Do They Guzzle?
You may want to see also
Explore related products
Fuel burn per hour
The fuel burn per hour for an aircraft depends on a variety of factors, including the aircraft's weight, aerodynamics, engine brake-specific fuel consumption, propulsive efficiency, airspeed, and cruising altitude. The number of passengers or cargo load can also impact the fuel efficiency, as a fuller plane may have better fuel efficiency per passenger than a half-empty one.
The fuel burn rate for a Boeing 747 is approximately 1 gallon (about 4 litres) of fuel per second, or 36,000 gallons (150,000 litres) over a 10-hour flight. This equates to 5 gallons of fuel per mile (12 litres of fuel per kilometre) or 100 miles per gallon (42 kilometres per litre) per person on a 500-passenger flight.
The Airbus A380, the current largest jet airliner, is even more fuel-efficient, burning an average of 4,600 gallons (11,400 litres) of fuel per hour. In comparison, the Airbus A380 burns twice as much fuel per hour as the Boeing 787-9, which is a more fuel-efficient option for airlines.
The fuel efficiency of an aircraft can be improved by reducing weight, improving aerodynamics, and enhancing engine brake-specific fuel consumption and propulsive efficiency. Flying at optimum altitudes and airspeeds can also maximise endurance and range while improving fuel economy. For example, Scandinavian Airlines reduced its flight speed from 860 to 780 km/h between 2006 and 2008, resulting in reduced fuel costs and carbon dioxide emissions.
Over time, aircraft have become more fuel-efficient. From 1967 to 2007, jet airliners improved their fuel efficiency by 70%, with a 40% improvement in engine efficiency and a 30% improvement in airframes. The average fuel burn of new aircraft fell by 45% from 1968 to 2014, with a compounded annual reduction of 1.3%.
Fuel Costs: Planning a Trip on a Budget
You may want to see also
Explore related products
Jet fuel price index
The Platts Jet Fuel Price Index is a weekly updated index that provides the latest price data for the average global price paid at the refinery for aviation jet fuel. The index is calculated by S&P Global Platts using their proprietary daily assessments for jet fuel spot prices in relevant regional markets. When a market is not assessed on a particular day, the previous working day's spot market price assessment is used.
Each of the individual Platts assessments is given a weighting in regional baskets, primarily based on demand for jet fuel in the region. Similarly, each of the regional indices is given a weighting in the Global Composite Index. These values are then compared with the average spot prices in 2000, weighted by demand during that period, to generate a percentage figure reflecting the overall rise in markets compared to the base period. For example, an index value of 200 indicates that prices have doubled since the year 2000.
The Jet Fuel Price Index does not provide historical price data. However, some historical price data is available from other sources. For example, data from AirportWatch.org.uk shows that on December 2, 2022, the jet fuel price was $122.70 per barrel, and on July 8, 2022, it was $146.17 per barrel. On February 25, 2020, the price was $111.13 per barrel, and on March 6, 2020, it was $54.32 per barrel.
Fluctuations in jet fuel prices can have a significant impact on the operations and profitability of airlines, as fuel costs are one of the major expenses for airlines.
The Weight of 80 Gallons of Fuel: How Much?
You may want to see also
Frequently asked questions
The cost of jet fuel varies depending on the region and airport. As of May 2022, the IATA per-gallon price was $4.82 in North America, $4.01 in Europe, and $3.55 in Asia. In Boston, it was selling between $9.79 and $13.38 per gallon, whereas in Oklahoma City, it was as low as $7.05 per gallon. As of July 2024, the price for a gallon of jet fuel is $2.39, down 42% from its peak in 2022.
The cost depends on the size of the plane and its fuel capacity. An A380, for example, can hold approximately 315,000 litres of fuel, which would cost around £205,000 to fill up. A Jumbo Jet (Boeing 747-400) flying from London to New York burns about 70,000 kilograms of fuel, which equates to 82,300 litres and costs approximately £53,500.
Fuel costs are one of the primary drivers of airline ticket prices. The high demand in 2022 caused a surge in jet fuel prices, which contributed to higher airline ticket prices. As jet fuel prices remain high, tickets are expected to remain expensive.
