Jet fuel gets cheaper as swine flu spreads
The only good news to come out of the swine flu outbreak for airlines is that jet fuel prices are falling. Spot prices for aviation fuel were down by 1-4% in key global markets in the past week, at the same time as underlying crude prices edged higher.
Underlying crude prices (WTI) rose 5.1% in the week to 28-Apr-09 and are holding just above USD50 per barrel. The swine flu outbreak has had much more of an impact on jet fuel prices, including New York (-1.7%), the US Gulf Coast (-3.9%), Los Angeles (-1.7%), Amsterdam (-1.0%) and Singapore (-2.7%).
The question is, will lower jet fuel prices more than offset reductions in demand caused by passengers cancelling or deferring travel? Unhelpful comments by US Vice President, Joe Biden, could tip the balance to the negative for some airlines.
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Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore vs Crude Spot price (WTI, USD per barrel): 21-Apr-09 to 28-Apr-09
|
|
21-Apr-09 |
22-Apr-09 |
23-Apr-09 |
24-Apr-09 |
27-Apr-09 |
28-Apr-09 |
one week
|
12 month
|
|
New York Harbor |
136.94 |
133.8 |
132.7 |
137.8 |
133.6 |
134.56 |
-1.7% |
-61.6% |
|
U.S. Gulf Coast |
133.94 |
131.8 |
129.95 |
134.68 |
130.35 |
128.75 |
-3.9% |
-62.4% |
|
Los Angeles |
137.35 |
135.8 |
132.7 |
140.55 |
137.1 |
135.06 |
-1.7% |
-61.2% |
|
140.65 |
136.27 |
137.18 |
143.37 |
140.27 |
139.29 |
-1.0% |
-61.6% |
|
|
138.33 |
136.9 |
137.38 |
136.05 |
136.31 |
134.64 |
-2.7% |
-60.9% |
|
|
WTI Spot |
46.65 |
47.41 |
48.46 |
50.65 |
49.29 |
49.01 |
5.1% |
-58.7% |
Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 25-Nov-08 to 28-Apr-09
