Fuel - IATA

Page 1 ... The global airline industry's fuel bill is estimated to total $130 billion in 2017 (accounting for over 17% of ... Total Industry Fuel Costs ($ billion) ...
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Fact Sheet – Fuel 

The global airline industry’s fuel bill is estimated to total $130 billion in 2017 (accounting for over 17% of operating expenses at $54.2/barrel Brent of oil).



This is a decrease of 2% over 2016’s fuel bill but is around 3 times 2003’s bill of $44 billion (that accounted for 14% of operating expenses at $28.8/barrel Brent).



In 2018 the fuel bill is forecasted at $156 billion (accounting for around 20% of operating expenses at $60 per barrel Brent).



Industry profits of $38.4 billion are forecasted for 2018, following profits of $34.5 billion in 2016.

Industry Fuel Costs and Net Profits Net Profits ($ Billion)

Total Industry Fuel Costs ($ billion)

50

240 38.4

35.9

40

35.3

34.5

190

30 17.3

20 14.7

10

8.3

5.0

9.2

10.7

140

13.7

90

0

-20

-4.6

-5.6

-10

-4.1 -11.3

40

-7.5

-26.1

-30 2002

2003

2004

2005

2006

2007

2008

-10 2009

2010

2011

2013

2014

2015

2016 2017E 2018F

Average Price per Barrel of Brent Crude Oil

Net Profits (LHS) Total Industry Fuel Costs (RHS)

2012

2011 111.2

2012 111.8

2013 108.8

2014 99.9

2015 2016 2017E 2018F 53.9 44.6 54.2 60.0

Source: Industry Economics Performance - Forecast Table (IATA Economics) Updated: 12/2017 Next Update: 06/2018

For more information: IATA Airline Industry Economic Performance

December 2017

Fuel Impact on Operating Costs % of Operating Average Price per Break-even Price Costs Barrel of Crude (US$) per Barrel (US$)

Year

Total Fuel Cost

2004

17.3%

US$38.3

US$34.7

US$65 billion

2005

22.0%

US$54.5

US$52.0

US$91 billion

2006

27.2%

US$65.1

US$68.1

US$127 billion

2007

28.6%

US$73.0

US$81.7

US$146 billion

2008

35.7%

US$99.0

US$83.3

US$203 billion

2009

28.2%

US$62.0

US$59.1

US$134 billion

2010

26.9%

US$79.4

US$89.8

US$151 billion

2011

29.8%

US$111.2

US$116.1

US$191 billion

2012

32.3%

US$111.8

US$117.1

US$228 billion

2013

32.0%

US$108.8

US$114.8

US$230 billion

2014

29.2%

US$99.9

US$107.4

US$224 billion

2015

24.2%

US$53.9

US$72.6

US$174 billion

2016

18.7%

US$44.6

US$62.0

US$132 billion

2017E 2018F

17.3% 18.9%

US$54.2 US$60.0

US$70.6 US$77.6

US$130 billion US$156 billion

Source: Industry Economics Performance - Forecast Table (IATA Economics) Updated: 12/2017 Next Update: 06/2018

Impact of Refinery Margin on Fuel Costs Crack Spread (% of crude price)

Aditional Cost ($ billion) 40

40% 36.3

35

35%