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Jet fuel prices on the rise, IATA to increase airline industry loss forecast

20-Mar-2009

Jet fuel spot prices have risen for a second consecutive week - and quite sharply - as underlying crude prices picked up (WTI +7.2% over the week) on higher than expected US inventories and an easing of the gloom on Wall Street.

Jet fuel prices jumped 8.2% over the past week in New York, +4.4% at the US Gulf Coast, +7.9% in Los Angeles, +5.5% in Amsterdam and +4.6% in Singapore.

However, over the past 12 months, jet fuel prices are still down by 58-62%, whereas the spot price of oil (WTI) has fallen by 54%.

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): 10-Mar-09 to 17-Mar-09

 

10-Mar-09

11-Mar-09

12-Mar-09

13-Mar-09

16-Mar-09

17-Mar-09

one week
Change

New York Harbor

121.08

115.38

124.95

122.5

124.51

131

8.2%

U.S. Gulf Coast

117.33

111.13

119.2

117

118.26

122.5

4.4%

Los Angeles

119.08

112.38

121.1

119.5

122.51

128.5

7.9%

Amsterdam-Rotterdam-Antwerp

123.2

117.61

125.09

126.15

124.11

129.92

5.5%

Singapore

113.93

116.07

110.48

116.67

114.52

119.17

4.6%

WTI Spot

45.68

42.46

46.91

46.22

47.33

48.97

7.2%

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 25-Nov-08 to 17-Mar-09

IATA set to revise industry loss forecast - again

The International Air Transport Association (IATA) is meanwhile preparing to release a revised industry loss forecast next Tuesday, as premium traffic in the new year continues to be much weaker than anticipated.

Asian carriers are expected to be hardest hit by the downturn, with a big revision expected to IATA's forecast (in Dec-2008) of a USD1.1 billion combined loss in 2009. Director General & CEO, Giovanni Bisignani stated, "the shocking slowdown in Japan, the region's largest market, and China, the region's fastest-growing, makes this forecast look optimistic".

IATA's Dec-2008 forecast pegged industry-wide net losses of around USD5 billion and USD2.5 billion for 2008 and 2009, respectively.


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