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Jet fuel gets cheaper as swine flu spreads

1-May-2009

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.

(For daily developments and analysis from the American aviation market direct to your inbox, sign-up now for a complimentary subscription to America Airline Daily).

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
Change

12 month
Change

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%

Amsterdam-Rotterdam-Antwerp

140.65

136.27

137.18

143.37

140.27

139.29

-1.0%

-61.6%

Singapore

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

 


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