Loading

Jet fuel prices keep falling as crude spikes, but airlines miss the full benefit

Analysis

Jet fuel spot prices eased a further 1-6% last week, despite a 7% surge in the underlying crude oil spot price.

Jet fuel prices fell 4.3% in New York, 4.0% at the US Gulf Coast, 5.9% in Los Angeles, 0.6% in Amsterdam and -3.3% in Singapore.

Over the past 12 months, jet fuel prices are down 60-61%, whereas the spot price of oil (WTI) has fallen by 59%.

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): 24-Feb-09 to 03-Mar-09

24-Feb-09

25-Feb-09

26-Feb-09

27-Feb-09

02-Mar-09

03-Mar-09

one week
Change

12 month
Change

New York Harbor

125.38

128.27

132.52

130.77

118.45

120.05

-4.3%

-60.0%

U.S. Gulf Coast

120.38

123.27

127.52

126.52

113.2

115.55

-4.0%

-61.0%

Los Angeles

124.88

128.4

131.77

130.52

117.2

117.55

-5.9%

-61.3%

Amsterdam-Rotterdam-Antwerp

120.41

122.82

126.68

126.75

116.48

119.73

-0.6%

-60.3%

Singapore

115

118.1

122.62

122.14

118.81

111.19

-3.3%

-60.4%

WTI Spot

38.86

41.64

43.18

44.15

40.07

41.57

7.0%

-59.4%

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 25-Nov-08 to 03-Mar-09

In its Financial Health Monitor released this week, IATA stated crude oil prices appear to have formed a floor just above USD40 a barrel, following OPEC's large output cuts in Dec-2008.

The industry body stated, "as falling demand eases refinery bottlenecks the 'crack spread' has narrowed to more normal levels and jet fuel prices have fallen towards USD50 a barrel". However, IATA noted that many airlines have part of their fuel bill locked into higher prices through their fuel hedging and hedging losses were a "large part of the larger than expected reported Q4 losses".

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More