IATA: Weaker dollar is helping non-US airlines manage fuel increases, with the exception of China

IATA reported (01-Sep-2017) world oil and jet fuel prices rose 60% since their low in Jan-2016. This, along with labour and MRO costs, has been a key factor underpinning the general increase in airline operating costs over the past 12 to 18 months. There has been a "sizeable squeeze on airline operating margins", which was particularly evident in 1Q2017. The increase in jet fuel prices has "not been felt evenly across all countries", primarily due to fluctuations in the value of individual currencies against the USD. India, Brazil, Russia, South Africa and the euro area states all saw a smaller increase in oil prices, as measured in local currency terms, than the USD denominated world price due to gains in the value of their currencies against the USD. Conversely, the modest fall in the value of the CNY against the USD since Jan-2016 has meant that fuel prices rose by 66%, compared to the 60% gain in the USD benchmark. [more - original PR]