Latest news with #jetfuel
CNA
16 hours ago
- Business
- CNA
IATA chief Willie Walsh on how tariffs may impact aviation industry
Airlines are set to have a profitable year, despite global economic and political shifts. That's the main takeaway from the International Air Transport Association's latest annual report released today. The IATA has partly attributed this resilience to lower jet fuel prices. Mr Willie Walsh, chief of the global airline body, shared how tariffs can impact the industry. He also explained why India will benefit significantly from the growth in aviation. Yasmin Jonkers reports.
The National
a day ago
- Business
- The National
Global airlines cut 2025 net profit forecast slightly to $36bn over trade tensions
Global airlines are forecast to end the year with $36 billion in net profit, 1.6 per cent below earlier predictions of $36.6 billion, as trade tension and economic uncertainties weigh on travel demand. That is still an improvement on the $32.4 billion earned in 2024, driven mainly by a 13 per cent year-on-year drop in jet fuel prices, the International Air Transport Association (Iata) said in its latest industry report on Monday. Total revenue will hit a record high of $979 billion this year, up 1.3 per cent on 2024, but will miss the $1 trillion forecast in December 2024. The year-on-year increase outpaces the 1 per cent increase in total expenses, shoring up industry profitability. Passenger volumes will also reach a record high of 4.99 billion in 2025, an increase of four per cent on last year, but falls short of the 5.22 billion travellers forecast earlier. 'The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections,' Willie Walsh, director general of Iata, said. 'We anticipate airlines flying more people and more cargo in 2025 than they did in 2024, even if previous demand projections have been dented by trade tensions and falls in consumer confidence.' Airlines' net margins will rise to 3.7 per cent in 2025, from 3.4 per cent in 2024. 'Considering the headwinds, it's a strong result that demonstrates the resilience that airlines have worked hard to fortify,' he said. While a net profit of $36 billion is 'significant', it translates into $7.20 per passenger per segment, and is still a 'thin buffer', the Iata chief said. 'Any new tax, increase in airport or navigation charge, demand shock or costly regulation will quickly put the industry's resilience to the test,' he said, urging policymakers to keep this 'clearly in focus' as the industry employs 86.5 million people and supports 3.9 per cent of global economic activity. Middle East outlook Airlines in the Middle East in 2025 are expected to earn $27.20 in profit per passenger, the highest of any region, as 'robust' economic performance supports strong air travel demand, Iata said. That is more than triple the global average of $7.20 per passenger this year and exceeds an earlier forecast of $23.9 profit per passenger forecast for 2025. It is below $28.5 recorded for 2024. Middle East airlines will end 2025 with an estimated $6.2 billion in net profit, a slight rise from $6.1 billion in net profit in 2024, and higher than a December forecast of $5.9 billion, according to the latest forecast by Iata. Carriers in the Middle East are forecast to have the strongest net profit margin of 8.7 per cent compared to all other regions of the world. Regional airlines, particularly in the Gulf, had a strong year of profitability amid continued strong demand for air travel, a push to increase international tourist arrivals, investment in airport upgrades and government policies designed to boost the aviation sector's contribution to the gross domestic product. 'However, with delays in aircraft delivery, the region will see limitations in capacity as airlines embark on retrofit projects to modernise their fleet, hence limiting growth,' the airline body said.
Yahoo
2 days ago
- Business
- Yahoo
Avina unveils more details for sustainable aviation fuel plant at Pittsburgh airport
Avina Synthetic Aviation Fuel is sharing a few more details about its planned sustainable aviation fuel production facility at Pittsburgh International Airport. Avina said in a news release late Thursday that its state-of-the-art plant will convert renewable feedstocks of ethanol to jet fuel at a rate of about 100 million gallons a year when it's fully operational. The plant would be built in the Southfield area between the runways and Interstate 376 that the company leased earlier this year from the Allegheny County Airport Authority. But the project has apparently not yet received the final investment decision, which could occur by the end of the year. Avina didn't respond to a request for comment. Click here to read more from our partner Pittsburgh Business Times. Download the FREE WPXI News app for breaking news alerts. Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW
Reuters
3 days ago
- Business
- Reuters
Brazil's Petrobras to cut average jet fuel prices by 7.9% as of June
RIO DE JANEIRO, May 30 (Reuters) - Brazilian state-run oil firm Petrobras ( opens new tab will cut its average jet fuel prices to distributors by 7.9%, or 0.28 real ($0.0490) per liter, starting June 1, the company said in a statement on Friday. ($1 = 5.7174 reais)
Yahoo
5 days ago
- Business
- Yahoo
Asia jet fuel exports to US West Coast to hit 1-year high in May
By Trixie Yap and Shariq Khan SINGAPORE/NEW YORK (Reuters) -Asia's jet fuel exports to the U.S. West Coast are expected to hit at least a one-year high in May, according to shiptracking data and three trade sources, as refinery outages in California boosted prices and import demand. The exports for May, mostly from South Korea, are pegged at nearly 600,000 metric tons (4.28 million barrels), according to shiptracking data from Kpler and estimates from two of the sources. The exports were last at similar levels in February of last year, the Kpler data showed. "The main reason behind the increasing volume of imports into the USWC region is primarily associated with unexpected outages in local refineries," said consultancy Wood Mackenzie's research analyst Rodrigo Jacob. The surge in imports comes at the start of the American summer travel season, potentially impacting travel costs and highlighting the vulnerabilities of U.S. West Coast supply. Motorist association AAA said near-record numbers of domestic airline passengers were expected to have flown over the May 22-26 Memorial Day holiday period this year. This year's forecast represents a 2% increase over last year and is just shy of 2005's record of 3.64 million passengers, AAA said. Outages at refineries in California owned by PBF Energy and Valero Energy since early this year have limited overall U.S. West Coast fuel production. [REF/OUT] "These outages combined with a decline in local inventories, drove local prices higher and triggered increased interest from traders in sourcing cargoes for import, predominantly from North Asia," Jacob said. ARBITRAGE The strength in U.S. jet fuel prices against Asia's opened the arbitrage window last month, traders said. The spread averaged more than $17 a barrel in April, Reuters calculations showed, while the average cost of chartering a medium-range vessel carrying 300,000 barrels of jet fuel for the roughly 30-day voyage was $5.50 a barrel, ship broking data showed, providing a good margin for Asian sellers. In the near term, strong jet fuel supply from China could depress benchmark prices in Singapore and keep arbitrage export trade to the U.S. open, said Matias Togni, an analyst at market insights provider Next Barrel. China's jet fuel exports hit a 13-month high in April, official customs data showed, while industry estimates for May volumes were above 2 million tons. "China prioritised jet fuel above other products in their export quotas, flooding Singapore storage tanks and forcing South Korea to redirect their flows towards the U.S. West Coast," Togni said. However, U.S. West Coast refinery use rates rose to a two-month high of 82.6% in the week ended on May 16, U.S. government data showed, potentially limiting import demand for June. Still, the permanent closure of two refineries on the U.S. West Coast from end-2025 could lift the region's jet fuel imports by up to 100,000 tons per month, analysts said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
