- The global airline industry’s fuel bill is likely to total US$114 billion in 2009 (accounting for 25% of operating expenses at US$61.8/barrel Brent of oil).
- This is a fall of US$37 billion over 2008 but still represents an increase of more than 250% on 2003’s fuel bill of US$44 billion (that accounted for 14% of operating expenses at US$28/barrel Brent).
- In 2010 the fuel bill is forecast at US$123 billion (accounting for 26% of operating expenses at US$75 per barrel Brent) due to:
- Renewed upward trend in fuel prices driven by economic recovery
- A return to capacity growth as traffic volumes rise again from recessionary lows
- Industry losses of US$11 billion are forecast for 2009 and US$5.6 billion in 2010.
Industry Fuel Costs and Net Profits
Updated:12/2009 Next Update:3/2010 Source: Industry Financial Forecast Table (IATA Economics)
Fuel Impact on Operating Costs
| Year |
% of Operating Costs |
Average Price per Barrel of Crude |
Break-even Price per Barrel |
Total fuel cost |
| 2003 |
14% |
US$28.8 |
US$23.2 |
US$44 billion |
| 2004 |
17% |
US$38.3 |
US$34.5 |
US$65 billion |
| 2005 |
22% |
US$54.5 |
US$51.8 |
US$91 billion |
| 2006 |
24% |
US$65.1 |
US$64.8 |
US$107 billion |
| 2007 |
27% |
US$73.0 |
US$76.5 |
US$134 billion |
| 2008 E |
31% |
US$99.0 |
US$92.4 |
US$165 billion |
| 2009 F |
23% |
US$56.0 |
US$49.9 |
US$106 billion |
| 2010 F |
26% |
US$75.0 |
US$71.3 |
US$123 billion |
Updated: 12/2009 Next Update:3/2010 Source: Industry Financial Forecast Table (IATA Economics)
Impact of Refinery Margin on Fuel Costs
Updated: 12/2009 Next Update:3/2010 Source: Industry Financial Forecast Table (IATA Economics)
Updated: December2009