• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 50 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 19 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 9 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 59 mins Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Did China cherry-pick the factors that affected the economic slow-down?
  • 13 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 33 mins Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 16 hours Are you aware of Oil Price short videos on our energy topics?
  • 21 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 24 hours NordStream2
  • 5 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 411 days Class Act: Bet You've Never Seen A President Do This.
  • 1 hour The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Rallying Oil Prices Are A Headache For Airlines

As if the airline sector needed another trouble on top of the reduced travel demand due to the pandemic, oil prices at their highest in a year are set to raise jet fuel costs for the industry that has been suffering a lot from the lockdowns, flight bans, border closures, and quarantines with COVID-19.

Oil prices hit a one-year high this week amid signs of a tightening oil market and risk appetite from investors and speculators.

Higher crude oil prices, however, mean higher fuel prices for airlines, which have been one of the worst-hit industries in the pandemic.

“This is just one of a litany of concerns when it comes to the airline industry. We would avoid these companies and that group,” Chad Morganlander, portfolio manager Washington with Crossing Advisors, told CNBC’s “Trading Nation” this week.

According to the analyst, airlines are indebted, and higher oil prices are making them less profitable and flexible. 

The latest data from the International Air Transport Association (IATA) shows that as of January 29, the jet fuel price globally was 5.3 percent higher than a month ago.

The airline industry needs a lot more people to be vaccinated to allay fears and to make governments allow travel without quarantine restrictions.

Jet fuel demand will be the last segment of fuel demand that will recover from the pandemic.

Airline travel will continue to suffer in the first half this year and will only recover, and jet fuel consumption with it, in the back half of 2021, when mass vaccinations are poised to allow traveling to more destinations quarantine-free, according to the world’s largest independent oil trading firm, Vitol. Vaccination passports could be inevitable for the tourism and airline industries to rebound from the pandemic hit, Mike Muller, the head of Vitol’s operations in Asia, said at the online Gulf Intelligence conference, as carried by Bloomberg.

Continued low demand for jet fuel will account for 80 percent of the 3.1-million-bpd gap in oil demand this year compared to pre-pandemic levels, the International Energy Agency (IEA) said in December.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News