Katerina Swanson
The price of jet fuel is a highly variable figure, influenced by global politics, market fluctuations, and the specific context of the airline's operations. Fuel is a major expense for airlines, accounting for 20-40% of their total expenditure, and is one of the highest and least controllable costs. The price of jet fuel is typically quoted in US dollars per metric tonne, with Jet A and Jet A-1 being common kerosene-based options. As of January 2022, the price of Jet A-1 was approximately $816 per metric tonne, or $0.82 per kilogram. This price has seen significant fluctuations, dropping to around $200 per metric tonne in May 2020 due to the COVID-19 pandemic.
The amount of fuel used by an aircraft depends on various factors, including the type of aircraft, sector length, and weather conditions. For example, a Boeing 747-400 flying from London to New York burns approximately 70,000 to 82,300 litres of fuel, costing around £53,500. Over a 10-hour flight, a Boeing 747 might burn 36,000 gallons (150,000 litres) of fuel. These variations in fuel consumption and price highlight the dynamic nature of the aviation industry's fuel costs.
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| Characteristics | Values |
|---|---|
| Jet Fuel Price Index | $92.92/bbl |
| Jet A1 fuel price (Jan 2022) | $816 per metric tonne or $0.82 / £0.61 per KG |
| Jet A1 fuel price (Jan 2021) | $430 per metric tonne or $0.43 per KG |
| Jet A1 fuel price (May 2020) | $200 per metric tonne or $0.20 per KG |
| National average price for jet fuel | $6.29 per gallon |
| National average price for 100LL aircraft fuel | $6.50 per gallon |
| National average price for Sustainable Aviation Fuel (SAF) | $8.74 per gallon |
| Highest jet fuel price (FAA Alaska region) | $8.11 per gallon |
| Lowest jet fuel price (FAA Central region) | $5.61 per gallon |
| Fuel cost for a London-New York flight (operated by a B747 Jumbo Jet) | £53,500 (€64,300) or £118 (€141 / $158) per person (based on 450 passengers) |
| Fuel cost for a 10-hour flight (Boeing 747) | 36,000 gallons (150,000 litres) |
| Fuel cost for a 6-hour flight (2 passengers) | 5,325 gallons |
| Fuel cost for a 6-hour flight (200 passengers) | 27 gallons per person |
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What You'll Learn
Jet fuel price varies by region
The price of jet fuel is not fixed and varies across different regions. The price is determined by factors such as demand, with Platts' assessments giving a weighting to each region's basket based on demand for jet fuel in that area.
For example, as of July 31, 2025, the national average price for jet fuel in the US was $6.29 per gallon. However, the price varied across different FAA regions within the country. The FAA Alaska region reported the highest jet fuel price at an average of $8.11 per gallon, while the FAA Central region had the lowest average price at $5.61 per gallon.
The jet fuel price also varies on a global scale. For instance, the global average jet fuel price for a particular week was $92.92/bbl, reflecting a 0.3% decrease from the previous week.
The variation in jet fuel prices across regions can have significant implications for the aviation industry. It influences the operational costs for airlines, which may adjust their pricing strategies accordingly. Additionally, the price fluctuations can impact the planning and budgeting for international flights, as fuel costs constitute a substantial portion of the overall expenses.
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Fluctuating fuel costs
Fuel is a major expense for airlines, accounting for 20-40% of their total expenditure. The price of aviation fuel is subject to constant market fluctuations influenced by global politics, leading to volatility in the market. For instance, the price of Jet A1 aviation fuel doubled between January 2021 and January 2022, from $430 per metric tonne to $816 per metric tonne. This equates to approximately $0.82 per kilogram.
The price of jet fuel also varies depending on the region and supplier, with limited competition among the select group of suppliers available to airlines. Aircraft filling up their tanks to the maximum is inefficient as a heavier aircraft burns more fuel and raises costs. Therefore, some airlines opt to refuel only on the return journey, while others fill up enough fuel for 1.5 trips.
The type of aircraft, sector length, and weather conditions also affect fuel requirements. For example, a Boeing 747 uses approximately 1 gallon (4 litres) of fuel every second, burning 36,000 gallons (150,000 litres) of fuel over a 10-hour flight. The direction of travel is another factor, as aircraft flying eastward can take advantage of the jet stream, resulting in significantly lower fuel costs than in the reverse direction.
To manage fuel price fluctuations, airlines use fuel hedging, where they purchase a fixed amount of fuel at a set price for a specified period. This protects them from price increases but can also result in financial losses if the market price drops or if the airline is unable to use the hedged fuel, such as during the COVID-19 crisis.
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Fuel hedging strategies
The price of jet fuel has been volatile in recent years, with a more than 75% year-on-year increase in 2022. This has squeezed airline profits, as it is challenging to pass on the dramatic rise through increased ticket prices. Fuel hedging is a strategy that airlines can use to protect themselves from these extreme price hikes.
Fuel hedging is a contractual tool that large fuel-consuming companies, such as airlines, use to reduce their exposure to volatile and potentially rising fuel costs. It allows them to establish a fixed or capped cost via a commodity swap or option. The cost of fuel hedging depends on the predicted future price of fuel. Airlines may place hedges based on future prices of jet fuel or crude oil, as the two are normally correlated.
There are several fuel hedging strategies that airlines can employ:
- Buying current oil contracts: This locks in fuel purchases at today's prices and is advantageous if prices are expected to rise in the future.
- Call and put options: A call option allows an investor to purchase a stock or commodity at a future date for a price agreed upon today, while a put option allows the opposite. A collar hedge, which uses both, can protect an airline from a decline in oil prices if prices are expected to increase.
- Swap strategy: Similar to a call option but with more stringent guidelines, a swap contract obligates an airline to fulfill the terms of the contract and is used when the airline believes prices will rise in the future.
Fuel hedging can help airlines stabilize costs and potentially save them billions. For example, Southwest Airlines and Air France-KLM saved around $1 billion each through fuel hedging as fuel prices surged. However, it is a gamble as fuel prices may fall, resulting in airlines paying more than competitors. Additionally, not all airlines hedge fuel.
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Fuel efficiency and aircraft weight
The price of jet fuel varies depending on the region and the type of fuel. The national average price for jet fuel in the US is $6.29 per gallon. Jet fuel prices in the FAA Alaska region are the highest, averaging $8.11 per gallon. Sustainable Aviation Fuel (SAF) is also available, with a national average price of $8.74 per gallon.
Now, onto the topic of fuel efficiency and aircraft weight. The weight of an aircraft, including the weight of the fuel, significantly impacts its overall weight, balance, performance, safety, and efficiency. Fuel economy in aircraft measures the transport energy efficiency of the aircraft. To improve fuel efficiency, it is essential to reduce weight, improve aerodynamics, and enhance engine brake-specific fuel consumption (BSFC) and propulsive efficiency or thrust-specific fuel consumption (TSFC).
Aircraft efficiency is closely linked to the lift-to-drag ratio. Parasitic drag, which includes form drag and skin-friction drag, can be minimized by reducing the frontal area and streamlining the aircraft for a lower drag coefficient. Induced drag, on the other hand, can be reduced by decreasing the size of the airframe, fuel and payload weight, and increasing the wing aspect ratio. Wingtip devices can also be used to improve the lift-to-drag ratio, but they come at the cost of increased structure weight.
The weight of an aircraft can be reduced by using lightweight materials such as titanium, carbon fiber, and composite plastics. For example, the Airbus A350 and Boeing 787 Dreamliner incorporate lightweight composite materials in their designs. However, to achieve longer ranges, a larger fuel fraction of the maximum takeoff weight is required, which adversely affects efficiency. Therefore, for long-haul flights, stopping halfway to refuel may be more fuel-efficient, despite the energy losses during descent and climb.
Overall, precise calculations and careful management of fuel weight are critical for aviation professionals to maximize fuel efficiency, safety, and performance during flight operations.
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Different types of plane fuel
The price of plane fuel varies depending on the type of fuel and the region. The latest global average jet fuel price is $92.92 per barrel. The national average price for jet fuel in the US is $6.29 per gallon.
There are several types of plane fuel, each with distinct uses, qualities, and specifications. Here are the details of some of the most common types:
Jet A
Jet A is a kerosene-based jet fuel primarily used in the United States. It is heavier than standard kerosene and has a higher flash point and freezing point. Jet A has a freezing point of -40°C and an open-air burn temperature of 1,030°C. It is tailored for regions where extreme cold is less of a concern.
Jet A-1
Jet A-1 is the most commonly used jet fuel worldwide. It has a lower freezing point of -47°C, making it suitable for international travel through varying climates and high altitudes. Jet A-1 also contains static dissipater additives that reduce static charges during movement, making it one of the safest fuel options.
Jet B
Jet B is the most common alternative to Jet A/A-1 and AVGAS. It has an extremely low freezing point of -76°C (according to some sources, -60°C), making it suitable for use in Arctic conditions and extremely cold areas. Jet B is a mixture of gasoline and kerosene, making it ideal for military or civilian aircraft in cold climates.
Aviation Gasoline (AVGAS)
AVGAS, or aviation gasoline, is used in traditional propeller aircraft and small piston-engine airplanes. It is also used for tasks like crop-dusting, private flying, and flight training. AVGAS contains tetraethyl lead (TEL), a toxic additive that prevents engine knocking. However, efforts are being made to eliminate or reduce the use of TEL. AVGAS has two main types: AVGAS 100LL (low lead) and AVGAS 100, with the former having a lower lead content.
Sustainable Aviation Fuel (SAF)
SAF is a biofuel that serves as an ecologically friendly alternative to conventional fossil-based fuels. It has similar efficiency to typical aviation fuel and can be used seamlessly with existing fuel systems. SAF is an important step towards the industry's goal of achieving carbon neutrality by 2050.
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Frequently asked questions
The price of plane fuel varies depending on the region, supplier, and market fluctuations. As of January 2022, Jet A1 fuel was priced at approximately $816 per metric tonne, which equates to about $0.82 per kilogram or £0.61 per kilogram.
Fuel usage depends on various factors, such as aircraft type, sector length, and weather conditions. For example, a Boeing 747-400 flying from London to New York burns approximately 70,000 to 82,300 kilograms of fuel, costing around £53,500.
Hedging is a strategy used by airlines to mitigate the impact of market fluctuations. By purchasing a fixed amount of fuel at a set price for a specific period, airlines can protect themselves from price increases. However, if fuel prices drop, they may end up paying more than the market rate.
Aircraft engineering plays a crucial role in fuel efficiency. Fully loaded aircraft are less efficient as heavier planes burn more fuel. Additionally, the direction of travel can impact efficiency, with eastward flights capitalising on the jet stream to reduce fuel costs.
Plane fuel, or Jet A1, is typically more expensive than car fuel due to differing tax structures. In the US, the national average price for jet fuel is $6.29 per gallon, while 100LL aircraft fuel is $6.50 per gallon. These prices fluctuate and are influenced by global politics and market dynamics.
