Site icon Icarus Signals. The home of economic insight

Jet Fuel Prices Take Flight as Vaccine Roll-Outs Spur Hopes of More Air Travel

Passenger planes parked on a runway are seen due to flight reductions to stop the spread of coronavirus disease (COVID-19), at the Arturo Merino Benitez International Airport, in Santiago, Chile, March 25, 2020. REUTERS/Pablo Sanhueza

SINGAPORE/LONDON/NEW YORK (Reuters) – Global jet fuel markets are coming back to life, resuscitated by a rebound in air cargo demand, gradually recovering passenger traffic and hopes that COVID-19 vaccines will spur more international flights in 2021.

The pandemic brought air travel to a virtual halt this year, and analysts say it may take years before global appetite for jet fuel returns to pre-pandemic levels.

But refining profits for the fuel surged to multi-month highs in all key trading hubs in December on hopes of higher demand in 2021, with U.S. and European margins underpinned by a recovery in air cargo volumes and Asian margins also by a rebound in domestic travel and heating consumption. Read more…..

Chart of the Day

Icarus TV

The shadow of COVID-19 looms darkly over nearly every sector of the global economy. But no industry has been hit harder than aviation. The International Air Transport Association expects airlines to lose more than US$118 billion this year. Jeffrey Goh, CEO of Star Alliance, shared his thoughts.

Exit mobile version