Mercedes Mullins
The price of aviation fuel is a highly variable factor in the operational costs of airlines. Several factors influence the price of jet fuel, and airlines employ various strategies, such as hedging, to manage fuel costs and mitigate financial risks. As of January 2015, a round-trip flight from London to New York on a Boeing 747-400 would consume approximately 70,000 kilograms of fuel, costing around £25,500 (€32,500) or £57 (€73) per passenger. However, fuel prices can fluctuate, and the current global average jet fuel price is $92.92 per barrel.
| Characteristics | Values |
|---|---|
| Price of jet fuel as of January 2015 for a London to New York flight on a B747 Jumbo Jet | £25,500 or €32,500 |
| Price per person for 450 passengers on the above flight | £57 or €73 |
| Hedging price for airlines | $600 per metric tonne for 12 months |
| Global average jet fuel price last week | $92.92/bbl |
| Jet fuel prices in the US | Varies by region |
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What You'll Learn
The price of jet fuel varies by region
For instance, in the United States, the national average price for jet fuel as of July 31, 2025, was $6.29 per gallon, with prices varying across different FAA regions. The FAA Alaska region reported the highest jet fuel price at $8.11, while the FAA Central region had the lowest price at $5.61.
In Europe, there is currently no tax on aviation fuel, which can significantly impact the overall price. Custom jet fuel price history reports are available for specific locations, such as New York Harbor, Gulf Coast, and Los Angeles, providing insights into spot jet fuel prices and contract prices.
Asia also has its own jet fuel pricing reports, including benchmark pricing, news, and analysis to aid in risk management and hedging strategy development. These reports offer transparency into pricing across different regions and help stakeholders make informed decisions.
Overall, the jet fuel market is dynamic and influenced by numerous factors. Monitoring organizations like Platts Jet Fuel Price Index and OPIS provide valuable insights into regional and global price fluctuations, helping airlines and governments make data-driven decisions and plan accordingly.
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Hedging: how airlines manage fuel price fluctuations
Fuel prices are a major concern for airlines, with fluctuations impacting their bottom line. To manage this volatility, airlines often employ a strategy called "hedging". Hedging is a risk management tool that allows airlines to lock in a fixed price for fuel over a set period. This strategy helps airlines reduce uncertainty and plan their finances effectively.
Here's how it works: an airline might agree to purchase a set quantity of fuel, let's say 5 million tonnes, at a constant price of $600 per metric tonne for the next 12 months. Regardless of market fluctuations, the airline will continue to pay $600 per metric tonne for their fuel during this period. If the market price of fuel increases, the airline is protected from these hikes. However, if the market price decreases, the airline may find itself paying more for fuel than the current rate.
Hedging is a double-edged sword. While it provides stability and safeguards against price surges, it can also result in financial losses if the market price drops significantly. For example, during the COVID-19 crisis, many airlines found themselves still paying for hedged fuel even though their operations were halted.
The decision to hedge and the quantity and price agreed upon are critical strategic choices for airlines. These decisions are influenced by various factors, including market conditions, fuel price trends, and the airline's financial situation. By carefully analysing these factors, airlines can optimise their hedging strategies to minimise risks and maximise profits.
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How much fuel does a long-haul flight use?
Long-haul flights require a lot of fuel, and the amount of fuel used depends on several factors, including the aircraft's weight, payload, engine efficiency, flight path, and weather conditions. Fuel consumption is a critical factor for airlines, as it accounts for a significant portion of their operating expenses.
The amount of fuel burned per seat-nautical mile is a crucial factor for long-haul flights. For example, the Airbus A380, one of the largest passenger aircraft, burns about 0.65 gallons of fuel per second, resulting in 18,720 gallons of fuel consumed in an hour. Over a 10-hour flight, this could amount to approximately 180,000 gallons of fuel. The Boeing 747, another large aircraft, burns fuel at a similar rate of one gallon per second, totalling 18,000 gallons in a 5-hour flight.
To manage fuel consumption, airlines employ various strategies. One crucial method is to carry only the required amount of fuel, as fuel is heavy, and reducing weight lowers fuel consumption. Composite airplanes, made from a combination of synergistic materials, are increasingly used for long-haul flights as they are strong, lightweight, and efficient, allowing them to fly longer distances while consuming less fuel.
Additionally, airlines use a technique called "load shifting," which involves transferring fuel between various tanks to maintain a balanced centre of gravity, improving stability and reducing fuel consumption. The Continuous Descent Approach (CDA) is another strategy where aircraft descend with minimal engine thrust, reducing thrust as they approach landing.
Despite the high fuel consumption of long-haul flights, they are often more fuel-efficient per mile and per passenger than short-haul flights. This is because long-haul flights have a longer cruise phase, which is more fuel-efficient than the take-off and climbing phases of short-haul flights.
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Sustainable Aviation Fuel (SAF)
The price of jet fuel varies substantially depending on what price airlines have "hedged" the fuel at. Hedging is where a constant price is agreed upon for a set period, protecting the airline from price rises but also resulting in higher costs if fuel prices drop. As of January 2015, a Jumbo Jet (Boeing 747-400) flight from London to New York would require approximately £25,500 (€32,500) worth of fuel, or £57 (€73) per person with 450 passengers. As of the week before last, the global average jet fuel price was $92.92 per barrel and this figure had fallen by 0.3% in the previous week.
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Jet fuel vs. 100LL
The price of jet fuel varies over time and by region. For example, as of January 2015, a return trip from London to New York on a Boeing 747-400 Jumbo Jet would require 70,000 kilograms of fuel, costing approximately £25,500 or €32,500. This works out at about £57 or €73 per person, based on 450 passengers. However, these prices do not include fuel delivery or refuelling fees, and the actual price paid by airlines can vary substantially depending on their fuel hedging strategies. Hedging allows airlines to agree on a constant price for fuel for a set period, helping them to reduce risk and fixed costs.
Jet fuel, or Jet-A fuel, is graded based on its main compound, kerosene, and can be separated into civil or military jet fuel ratings. On the other hand, 100LL (low lead) is a type of aviation gasoline (Avgas) containing tetraethyl lead (TEL), a lead additive that increases its octane number. This higher octane rating allows Avgas to be used in engines with higher compression ratios without detonating, which could damage the combustion chamber. 100LL is marked in airport refuelling facilities with "AVGAS" in white letters against a red background, preceded by a vertical light blue bar, to prevent misfuelling with unleaded Avgas or Jet A-1.
While Jet A-1 is more widely used worldwide and has a lower freezing point of -47°C, making it suitable for longer flights and cold weather conditions, 100LL is more common in the US and has a higher freezing point of -40°C, making it preferable for shorter flights. Jet A-1 also typically contains static dissipater additives to reduce its static charge, while 100LL rarely does. The high lead content of 100LL has raised environmental and health concerns, with the Federal Aviation Administration (FAA) working with the EPA to remove tetraethyl lead from fuel completely.
In terms of distribution and certification, UL94, a mid-octane unleaded Avgas, would be the easiest replacement for 100LL. However, it would require engine modifications and result in a loss of performance. Other potential fuel alternatives, such as low-octane mogas, were found to be unacceptable for high-performance engines.
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Frequently asked questions
The price of aviation fuel varies depending on the region and the airline's contract details. As of January 2015, a Boeing 747-400 flying from London to New York would burn approximately 70,000 kilograms of fuel, costing around £25,500 or €32,500. This equates to approximately £57 or €73 per person, based on 450 passengers.
The price of aircraft fuel is influenced by market demand and can fluctuate over time. Airlines can hedge fuel prices by agreeing to a constant price for a set period, reducing financial risks.
Currently, there is no tax on aviation fuel in Europe. However, taxes and duties on aviation fuel may exist in other regions.
Fuel consumption depends on various factors, including the aircraft's size, route, and cargo weight. For example, a Boeing 747-400 flying from London to New York burns approximately 70,000 kilograms of fuel.
Airlines consider fuel prices and consumption rates in their financial planning. They may use hedging strategies to lock in fuel prices and manage risks associated with price fluctuations. However, hedging can also result in financial losses if market prices drop or if the airline's operations are disrupted.
