Latest news with #jetfuel
Yahoo
09-07-2025
- Business
- Yahoo
Analysis-Jet fuel demand falters as Chinese curb overseas trips, US policies weigh
By Seher Dareen and Trixie Yap LONDON/SINGAPORE (Reuters) -The recovery in global jet fuel demand is set to slow and stall below pre-pandemic levels this year and next as the Chinese travel abroad less, stringent U.S. immigration policies deter some tourists and aircraft fleets become more fuel-efficient. Jet fuel accounts for around 7% of global fuel use and softer consumption leads to lower overall demand for oil and ultimately weaker oil prices. Less use of aviation fuel also reduces a source of 2.3% of greenhouse gas emissions. Aviation fuel consumption has lagged the recovery seen in fuel oil and gasoline since the pandemic, held back largely by a decline in long-haul flights from Asia, particularly China, with tight consumer spending curbing travel budgets. The International Energy Agency forecast in June that jet fuel consumption would reach 8 million barrels per day in 2027, above 2019's level of 7.9 million bpd, having earlier predicted it would recover to the pre-pandemic rate last year. Demand grew by 5.6% last year, but the IEA expects a slowdown to 1.32% in 2025 and 1.29% next year. U.S. President Donald Trump's crackdown on immigrants and his orders to tighten border policy are deterring some people from flying to the United States - one of the most visited countries in the world - over fears of being detained. The aviation industry is also concerned that Trump's tariffs may dampen global growth and, therefore, demand for air travel. J.P. Morgan expects global jet fuel demand to hold steady this northern hemisphere summer - usually a peak time for air travel. It sees U.S. demand flat at 1.7 million bpd through 2026, after surpassing 2 million bpd in May for the first time since 2019. Demand in Europe is also expected to be steady in the third quarter. "We maintain a cautious outlook on air travel, as macroeconomic uncertainty and stricter U.S. immigration policies dampen U.S.-bound travel," J.P. Morgan analyst Natasha Kaneva said in a note. Analysts at consultancy BMI, a Fitch group company, estimate a decline of 16.3% in U.S. arrivals for 2025. Data from aviation analytics company Cirium shows a 1.2% fall in passengers expected from the United Kingdom to the U.S. in 2025 compared to last year. Other Europeans have been booking fewer trips there too. Domestic air travel is also showing signs of stagnation, with internal flights contracting 1.7% year-on-year in May, the only domestic market to do so, according to data from the International Air Transport Association. FUEL-EFFICIENT PLANES China, the world's second biggest economy, was one of the last countries globally to come out of lockdown restrictions and its citizens still prefer domestic tourism, partly due to fears over longer-haul flights after the pandemic left some people stranded in multiple countries. International flight capacity is relatively smaller at 9% compared to 29% in the U.S., according to data compiled by consultancy Kpler. While domestic travel has rebounded to 2019 levels, overall flight growth in China is expected to remain tepid year-on-year, Macquarie Group strategist Vikas Dwivedi said. Meanwhile in Indonesia, Southeast Asia's largest market, the number of seats on domestic and international flights in June declined 4.1% on the year, data from aviation consultancy OAG showed. They have declined year-on-year since January. Improved efficiency and mileage in newer aircraft is another factor curbing jet fuel demand, as planes carry more passengers over longer distances while burning less fuel, energy and industry analysts say. The world's largest planemaker Airbus says its new airplane would be 20-30% more fuel-efficient than the current A320neo family. The new plane, which has yet to be given a name, will enter service in 10-15 years. When A320neo was introduced in the mid-2010s it already cut jet fuel use by nearly 15%. Boeing's current 737 Max, the fourth generation of 737s, is also about 15% more fuel-efficient than the previous line. Koen Wessels, head of demand at Energy Aspects, said not a lot of change is expected next year from the trends of increasing jet efficiencies and more uncertainty over the global economy affecting travel. "The onus falls on Chinese demand to push global demand higher… However, this mostly hinges on the Chinese consumer (who) has been very unforthcoming in... spending ever since the pandemic."
Yahoo
09-07-2025
- Business
- Yahoo
Analysis-Jet fuel demand falters as Chinese curb overseas trips, US policies weigh
By Seher Dareen and Trixie Yap LONDON/SINGAPORE (Reuters) -The recovery in global jet fuel demand is set to slow and stall below pre-pandemic levels this year and next as the Chinese travel abroad less, stringent U.S. immigration policies deter some tourists and aircraft fleets become more fuel-efficient. Jet fuel accounts for around 7% of global fuel use and softer consumption leads to lower overall demand for oil and ultimately weaker oil prices. Less use of aviation fuel also reduces a source of 2.3% of greenhouse gas emissions. Aviation fuel consumption has lagged the recovery seen in fuel oil and gasoline since the pandemic, held back largely by a decline in long-haul flights from Asia, particularly China, with tight consumer spending curbing travel budgets. The International Energy Agency forecast in June that jet fuel consumption would reach 8 million barrels per day in 2027, above 2019's level of 7.9 million bpd, having earlier predicted it would recover to the pre-pandemic rate last year. Demand grew by 5.6% last year, but the IEA expects a slowdown to 1.32% in 2025 and 1.29% next year. U.S. President Donald Trump's crackdown on immigrants and his orders to tighten border policy are deterring some people from flying to the United States - one of the most visited countries in the world - over fears of being detained. The aviation industry is also concerned that Trump's tariffs may dampen global growth and, therefore, demand for air travel. J.P. Morgan expects global jet fuel demand to hold steady this northern hemisphere summer - usually a peak time for air travel. It sees U.S. demand flat at 1.7 million bpd through 2026, after surpassing 2 million bpd in May for the first time since 2019. Demand in Europe is also expected to be steady in the third quarter. "We maintain a cautious outlook on air travel, as macroeconomic uncertainty and stricter U.S. immigration policies dampen U.S.-bound travel," J.P. Morgan analyst Natasha Kaneva said in a note. Analysts at consultancy BMI, a Fitch group company, estimate a decline of 16.3% in U.S. arrivals for 2025. Data from aviation analytics company Cirium shows a 1.2% fall in passengers expected from the United Kingdom to the U.S. in 2025 compared to last year. Other Europeans have been booking fewer trips there too. Domestic air travel is also showing signs of stagnation, with internal flights contracting 1.7% year-on-year in May, the only domestic market to do so, according to data from the International Air Transport Association. FUEL-EFFICIENT PLANES China, the world's second biggest economy, was one of the last countries globally to come out of lockdown restrictions and its citizens still prefer domestic tourism, partly due to fears over longer-haul flights after the pandemic left some people stranded in multiple countries. International flight capacity is relatively smaller at 9% compared to 29% in the U.S., according to data compiled by consultancy Kpler. While domestic travel has rebounded to 2019 levels, overall flight growth in China is expected to remain tepid year-on-year, Macquarie Group strategist Vikas Dwivedi said. Meanwhile in Indonesia, Southeast Asia's largest market, the number of seats on domestic and international flights in June declined 4.1% on the year, data from aviation consultancy OAG showed. They have declined year-on-year since January. Improved efficiency and mileage in newer aircraft is another factor curbing jet fuel demand, as planes carry more passengers over longer distances while burning less fuel, energy and industry analysts say. The world's largest planemaker Airbus says its new airplane would be 20-30% more fuel-efficient than the current A320neo family. The new plane, which has yet to be given a name, will enter service in 10-15 years. When A320neo was introduced in the mid-2010s it already cut jet fuel use by nearly 15%. Boeing's current 737 Max, the fourth generation of 737s, is also about 15% more fuel-efficient than the previous line. Koen Wessels, head of demand at Energy Aspects, said not a lot of change is expected next year from the trends of increasing jet efficiencies and more uncertainty over the global economy affecting travel. "The onus falls on Chinese demand to push global demand higher… However, this mostly hinges on the Chinese consumer (who) has been very unforthcoming in... spending ever since the pandemic." 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
Bloomberg
07-07-2025
- Business
- Bloomberg
After Gasoline, China's Oil Refiners Face a Jet Fuel Glut
China's oil refiners are grappling with an oversupply of jet fuel, in yet another blow to the bottom line of a sector already dealing with ebbing demand for gasoline and diesel. In the post-pandemic period, as flights returned to the skies, jet fuel was a boon for domestic refiners struggling with a sputtering economic recovery, the electrification of the car fleet and trucks turning to alternatives like liquefied natural gas. Refiners piled into aviation, using up feedstock that in the past would have gone into road-transport fuels.
Asharq Al-Awsat
04-07-2025
- Business
- Asharq Al-Awsat
IATA: Air Cargo Demand Up 2.2% Despite Trade Disruptions
Total air cargo demand, measured in cargo ton-kilometers (CTK), rose by 2.2% compared to May 2024 levels, up 3.0% for international operations, according to the International Air Transport Association (IATA). Also, capacity, measured in available cargo ton-kilometers (ACTK), increased by 2% compared to May 2024, up 2.6% for international operations. The Association said several factors in the operating environment should be noted, including year-on-year world industrial production, which rose 2.6% in April 2025. Meanwhile, air cargo volumes grew 6.8% over the same period, outpacing global goods trade growth of 3.8%. IATA said jet fuel prices in May 2025 were 18.8% lower than the previous year and 4.3% below the previous month. It noted that global manufacturing contracted in May, with the PMI falling to 49.1, below the 50 mark that signals growth. New export orders also remained in negative territory at 48, reflecting pressure from recent US trade policy changes, the Association revealed. Global manufacturing output, measured by the PMI, dropped below the 50 threshold to 49.1 in May, for the first time in 2025. This, IATA said, was a 6.9% year-on-year decrease and a 2.8% drop compared to April 2025, indicating a slight weakening in global manufacturing production compared to April 2025. Meanwhile, output declined in May, new export orders grew 1.6 index points from April, to 48. New export orders have been directly affected by the US trade policy changes, which have reshaped global demand dynamics and impacted trade flows. Willie Walsh, IATA's Director General, said the rise of cargo demand globally by 2.2% in May is encouraging news as a 10.7% drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting US trade policies. 'Even as these policies evolve, already we can see the air cargo sector's well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries,' he said. Meanwhile, carriers in the Middle East continued to build momentum, expanding for the second consecutive month. The region recorded a 3.6% year-on-year rise and capacity increased by 4.2%. Asia Pacific posted the strongest growth, up 8.3% year-on-year while capacity increased by 5.7%. In return, North American carriers saw a -5.8% year-on-year decrease in growth for air cargo in May, the slowest growth of all regions. Capacity decreased by -3.2%. European carriers saw 1.6% year-on-year demand growth for air cargo in May. Capacity increased 1.5%. Also, Latin American carriers saw a 3.1% year-on-year increase in demand growth for air cargo in May. Capacity increased 3.5%. As for African airlines, they saw a 2.1% year-on-year decrease in demand for air cargo in May. Capacity increased by 2.7%. Trade Lane Growth A significant decrease in the Asia-North America trade lane was expected and realized as the effect of front-loading faded and changes to the de-minimis exemption on small package shipments were enforced. As cargo flows reorganized, several route areas responded with surprising growth, IATA said.
Daily Mail
02-07-2025
- General
- Daily Mail
Plane crash at Cross Keys Airport in New Jersey causes 'mass casualty incident'
Emergency response efforts are underway after a small-engine plane crashed near a New Jersey airport, with multiple reported casualties and at least one person still trapped inside the wreckage. The aircraft carrying 14 people went down Wednesday around 5:30pm in Williamstown near the Cross Keys Airport on Wednesday. Horrifying video shows victims being rolled from the scene on stretchers, with at least five victims headed to the nearby Cooper University Hospital in Camden. Authorities told Channel2Now five people are in critical condition, while three others are in serious, but stable condition. One passenger is reportedly still trapped in the plane, which is reportedly leaking about 50 gallons of dangerous jet fuel, according to the outlet. The public is urged to remain clear of the area as authorities work to mitigate the danger. It is unclear what caused the plane crash.
