The price of aviation fuel has surpassed the record set at the beginning of the war in Ukraine in global markets.
Modern.az reports, citing foreign media, that energy analyst John Kemp stated in a note that the price of jet fuel in Singapore (as a key indicator of fuel prices in Asia) has doubled since April. According to new statistics, the average price of this fuel has reached approximately $166 per barrel; whereas it was $82 in January of this year.
This figure even exceeded the previous record of $160 recorded in 2022 (the beginning of the war in Ukraine).
The analyst emphasized that fuel, along with labor and capital costs, is one of the three main expenses for air passenger transport companies. Therefore, its sudden increase creates serious financial pressure on airlines that do not secure fuel purchases with hedging measures. If this increase continues, even companies using hedging mechanisms will remain under pressure.
Bloomberg also reported a few days ago that the sharp increase in jet fuel prices as a result of the US war against Iran and the closure of the Strait of Hormuz forced major airlines to reduce the number of flights during the profitable summer travel season.
