- The global airline industry’s fuel bill is forecast to total US$132 billion in 2010 (accounting for 26% of operating expenses at US$79.0/barrel Brent of oil).
- This is an increase of US$19 billion over 2009 and represents an increase of 300% on 2003’s fuel bill of US$44 billion (that accounted for 14% of operating expenses at US$28.8/barrel Brent).
- Stronger economic growth is pulling oil prices up
- In 2009 the fuel bill is estimated at US$113 billion (accounting for 24% of operating expenses at US$62 per barrel Brent).
- Industry losses of US$2.8 billion are forecast for 2010 and following losses of US$9.4 billion in 2009.
Industry Fuel Costs and Net Profits
Updated:3/2010 Next Update:6/2010 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$23.3 |
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$67.4 |
US$107 billion |
| 2007 |
27% |
US$73.0 |
US$81.1 |
US$134 billion |
| 2008 |
33% |
US$99.0 |
US$88.9 |
US$189 billion |
| 2009 E |
24% |
US$62.0 |
US$55.6 |
US$113 billion |
| 2010 F |
26% |
US$79.0 |
US$77.1 |
US$132 billion |
Updated: 3/2010 Next Update:6/2010 Source: Industry Financial Forecast Table (IATA Economics)
Impact of Refinery Margin on Fuel Costs
Updated: 3/2010 Next Update:6/2010 Source: Industry Financial Forecast Table (IATA Economics)
Updated: March 2010