Jet fuel prices rise in America
Brian Dees, director of the White House National Economic Council, said on Wednesday that the US administration is closely monitoring the rise in jet fuel prices that could threaten the recovery of air travel.
“Jet fuel is something we pay close attention to and monitor, and it is a direct byproduct of the impact of the Russian invasion of Ukraine,” Dess told reporters.
Jet fuel costs have jumped in the United States, especially in the East Coast region, which depends largely on Colonial Pipeline shipments of refined products from Texas to New Jersey, as well as imports from Europe.
High jet fuel prices around the world are hurting airlines and travelers as air travel begins to recover from the restrictions of the Covid-19 pandemic in most of the world. The price increases risk undermining the revival of air travel that is gaining momentum from the easing of restrictions at international borders.
US airlines said last month they were raising travel fares to offset some of the costs of higher fuel prices amid strong passenger demand.
Fuel is the second biggest cost for airlines after labour, but many US airlines do not hedge against oil price fluctuations as most European airlines do.
Jet fuel costs in the East Coast region of the United States have reached record highs in the past few days.
The Department of Transportation said today, Wednesday, that US airlines consumed 1.14 billion gallons of fuel, which is 5.4 percent less than in January 2022, and 11.4 percent from pre-pandemic levels in February 2019.
The ministry added that the cost of a gallon of jet fuel in February 2022 amounted to $2.60, an increase of 24 cents (10.2%) from January and 70 cents (31.3 percent) from February 2019. The highest since October 2014 of $2.68.