Katerina Swanson
The price of jet fuel is a significant factor in determining airline ticket prices. As of July 2024, jet fuel costs around $2.39 per gallon, a decrease of 42% from its peak in 2022 but still notably higher than pre-pandemic prices. In the US, the national average price is $6.29 per gallon, while the price of Jet A1, a specific type of jet fuel, was approximately $816 per metric tonne as of January 2022. The cost of jet fuel varies based on region and demand, and it is not taxed in the UK or Europe. The price of jet fuel has a direct impact on the operational costs of airlines, influencing ticket prices and contributing to the overall expense of air travel.
| Characteristics | Values |
|---|---|
| National average price for jet fuel per gallon | $6.29 |
| National average price for 100LL aircraft fuel per gallon | $6.50 |
| National average price for Sustainable Aviation Fuel (SAF) per gallon | $8.74 |
| FAA Alaska region jet fuel price per gallon | $8.11 |
| FAA Central region jet fuel price per gallon | $5.61 |
| Jet fuel price per gallon as of July 2024 | $2.39 |
| Jet fuel price range per gallon in 2019 | $1.80 - $1.90 |
| Jet A1 price per metric tonne as of January 2022 | $816 |
| Jet A1 price per metric tonne in January 2021 | $430 |
| Jet A1 price per metric tonne in May 2020 | $200 |
| Jet A1 price per KG in January 2022 | $0.82 |
| Jet A1 price per KG in January 2021 | $0.43 |
| Jet A1 price per KG in May 2020 | $0.20 |
| Approximate cost to fill an A380 with fuel | £205,000 |
| Approximate cost of fuel for a B747 Jumbo Jet flying from London to New York | £53,500 |
| Approximate cost per person for the above journey with 450 passengers | £118 |
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What You'll Learn
Jet fuel price per gallon
The price of jet fuel per gallon has fluctuated over the years, influenced by various factors such as demand, oil price variations, and economic conditions. As of July 2024, the price for a gallon of jet fuel was around $2.39, which marked a 42% decrease from its post-2019 peak in 2022. However, jet fuel prices remain higher than pre-pandemic levels.
In 2019, jet fuel prices remained relatively stable, ranging between $1.80 and $1.90 per gallon. The COVID-19 pandemic caused a slump in air travel, leading to a collapse in oil prices. Consequently, jet fuel prices dropped significantly, reaching a low of around $0.20 per KG in May 2020. However, as travel restrictions eased and demand picked up, jet fuel prices began to climb again.
By January 2022, the price of Jet A1 fuel had surged to approximately $816 per metric tonne, or about $0.82 per KG, reflecting a doubling in price compared to the previous year. This increase in jet fuel costs had a direct impact on airline ticket prices, making air travel more expensive for passengers.
The cost of jet fuel also varies across different regions. For instance, 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 price at around $5.61 per gallon. These price variations can be attributed to factors such as regional demand, transportation costs, and local market dynamics.
Additionally, it's important to consider the overall cost of fueling an aircraft, as it involves more than just the price per gallon. The total expense includes the cost of the fuel itself, delivery charges, and refueling fees. For example, filling an A380 aircraft with approximately 315,000 litres of fuel would cost around £205,000. The price airlines pay for fuel also depends on the quantity they purchase and the contracts they have in place.
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Jet fuel price per metric tonne
The price of jet fuel per metric tonne varies and is dependent on various factors. As of January 2022, the price of Jet A1 was approximately $816 per metric tonne, which is about $0.82 per kilogram. This was around double the price from the previous year, where Jet A1 was priced at approximately $430 per metric tonne. The price of jet fuel collapsed due to the Covid-19 pandemic, with Jet A1 falling to $200 per metric tonne in May 2020, equating to around $0.20 per kilogram.
The price of jet fuel is closely aligned with the fluctuating price of oil. For example, in May 2020, the price of Jet A1 was 69% lower than the previous year. The price of jet fuel is a significant contributor to airline ticket prices, and these prices have remained high due to jet fuel's high cost.
The cost of jet fuel is also dependent on the region. For instance, the FAA Alaska region reports the highest jet fuel price in the US at an average of $8.11 per gallon, whereas the FAA Central region reports the lowest price at an average of $5.61 per gallon.
Additionally, the price airlines pay for their fuel can vary substantially due to hedging practices. Hedging involves agreeing on a constant price for fuel for a set period, allowing airlines to reduce financial risks and fixed costs. For example, an airline may hedge 5 million tonnes of fuel at $600 per metric tonne for 12 months, protecting them from price increases during that period.
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Jet fuel price per kilogram
The price of jet fuel is generally given in gallons or barrels rather than kilograms. As of July 2024, the price for a gallon of jet fuel is around $2.39, down 42% compared to its post-2019 peak in 2022. In 2019, jet fuel prices remained steady at between $1.80 and $1.90 per gallon. The national average price for jet fuel in the US is $6.29 per gallon, with prices varying by region. The FAA Alaska region is reporting the highest jet fuel price at an average of $8.11, while the FAA Central region is reporting the lowest price at an average of $5.61.
The global average jet fuel price for the week ending 7th September 2023 was $92.92 per barrel, down 0.3% from the previous week.
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Jet fuel price fluctuations
The price of jet fuel is a significant factor in determining airline ticket prices. The price of jet fuel is closely linked to the price of oil, which fluctuates daily. As a result, jet fuel prices can vary substantially over time. For instance, in May 2020, the price of Jet A1 was around $0.20 per KG due to the collapse in oil prices caused by the Covid-19 pandemic. A year later, in January 2022, the price had doubled to approximately $0.82 per KG. As of July 2024, the price for a gallon of jet fuel was around $2.39, a 42% decrease from its post-2019 peak in 2022. However, jet fuel prices remain significantly higher than pre-pandemic levels, and there are no expectations for a decrease anytime soon.
Regional disparities in jet fuel prices also exist. In the United States, the national average price for jet fuel was $6.29 per gallon, with the FAA Alaska region reporting the highest price at $8.11, and the FAA Central region the lowest at $5.61. These price variations can be attributed to factors such as demand and regional market assessments. S&P Global Platts, for example, publishes the Platts Jet Fuel Price Index, which reflects daily assessments of jet fuel spot prices in relevant regional centers. When a market is not assessed on a particular day, such as during holidays, the previous working day's spot market price assessment is used.
The cost of jet fuel also depends on the quantity purchased and the contract details. Airlines often engage in fuel hedging, where they purchase a set quantity of fuel at a specific price. If an airline stops flying and doesn't use the hedged fuel, they still incur the cost. Additionally, the price per kilogram that airlines pay includes not just the fuel but also delivery and refueling fees, further increasing the overall expense.
The variability in jet fuel prices has significant implications for the aviation industry. The high cost of jet fuel contributes to expensive airline tickets, as fuel costs are passed on to consumers. Moreover, the unpredictability of fuel prices can challenge airlines' financial planning and stability, especially when sudden increases occur. Consequently, jet fuel price fluctuations are a critical factor that the industry continuously navigates and monitors.
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Jet fuel cost per flight
The price of jet fuel is a significant factor in determining airline ticket prices. While prices surged in 2022 due to high demand following the pandemic-related slump in air travel, they have stabilized over the past two years with some fluctuations. As of July 2024, the price per gallon of jet fuel is around $2.39, down 42% compared to its post-2019 peak in 2022. However, jet fuel still costs significantly more than before the pandemic.
The cost 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, while the Sustainable Aviation Fuel (SAF) costs $8.74 per gallon. The price of jet fuel is closely tied to the price of oil, which fluctuates daily. For example, in May 2020, the price of Jet A1 fuel was around $200 per metric tonne, or $0.20 per KG, due to the collapse in oil prices caused by the Covid-19 pandemic. By January 2022, the price had doubled to approximately $816 per metric tonne or $0.82 per KG.
The amount of fuel required for a flight depends on the distance and the type of aircraft. A Jumbo Jet (Boeing 747-400) flying from London to New York burns approximately 70,000 kilograms of fuel, which equates to about 82,300 litres. Based on these figures, the cost of the fuel for this flight is approximately £53,500 or $64,300, which works out to about £118 or $158 per person for 450 passengers.
Airlines use hedging to manage fuel price fluctuations. They agree on a constant price for fuel for a set period, protecting them from price increases but also resulting in higher costs if prices drop. For example, an airline may pay $600 per metric tonne, regardless of the market price. Hedging can lead to financial losses if the airline stops flying and doesn't use the hedged fuel, as they still have to pay for it.
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Frequently asked questions
As of July 2024, the price for a gallon of jet fuel is around $2.39.
As of January 2022, the price of Jet A1 was approximately $816 per metric tonne.
The national average price for jet fuel in the US is $6.29 per gallon. The FAA Alaska region reports the highest jet fuel price at an average of $8.11, while the FAA Central region has the lowest price at an average of $5.61.
An A380 can hold approximately 315,000 litres of fuel, so it would cost approximately £205,000 to fill it up.
Jet A1 was priced at approximately $0.82 per KG in January 2022. This price can vary daily and is influenced by the price of oil.
