Following the significant drop in aviation fuel spend, caused by the global pandemic, spending has continually risen, and is expected to reach a new record of US$291 billion (R5,2 trillion) this year, reports stocklytics.com.
Spending this year is forecast to be US$100 billion (R1,8 trillion) more than in 2019. According to the report, airlines are spending significantly more on the same amount of fuel as five years ago. IATA statics revealed that fuel costs increased by 53% since 2019.
Similarly, IATA’s Global Outlook for Air Transport June 2024, found that airlines spent US$190 billion (R3,4 trillion) in 2019 on 96 billion gallons of fuel at a price of US$80 (R1 435) per barrel, compared with 2024, where it expects expenditure of US$291 (R5,2 trillion) on 99 billion gallons of fuel at a cost of US$114 (2 045) per barrel.
This radical increase in fuel costs is mainly attributed to the Russia-Ukraine war and the conflict in the Middle East, which significantly drove up fuel prices. Political reasons for denial of airspace rights also meant that many international airlines had to lengthen routes.
