- The global airline industry’s fuel bill grew by US$31 billion to US$165 billion in 2008 (accounting for 31% of operating expenses at US$99/barrel Brent of oil).
- This is an increase of more than 375% on 2003’s fuel bill of US$44 billion (that accounted for 14% of operating expenses at US$28/barrel Brent).
- In 2009 the fuel bill is forecast at US$106 billion (accounting for 23% of operating expenses at US$56 per barrel Brent) due to:
- Moderation in fuel price from historic highs in 2008
- Capacity reductions driven by severe falls in traffic demand associated with recession
- Industry losses of US$10.4 billion are forecast for 2008 and US$9.0 billion in 2009.
- The price of oil is expected to average US$56/barrel Brent in 2009, a fall in price from recent years driven by economic recession and reduced demand for fuel.
Industry Fuel Costs and Net Profits
Updated: 6/2009 Next Update: 9/2009 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 |
Updated: 6/2009 Next Update: 9/2009 Source: Industry Financial Forecast Table (IATA Economics)
Impact of Refinery Margin on Fuel Costs
Updated: 6/2009 Next Update: 9/2009 Source: Industry Financial Forecast Table (IATA Economics)
Updated September 2009