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Jet Fuel Demand Growth Lags As Air Traffic Beats Pre-2020 Levels

JET FUEL
Energy BulletsHomepageBulletCommodities

While global air traffic is now exceeding pre-pandemic levels, demand growth for jet fuel has not caught up due to more efficient aircraft, according to Reuters.

  • Jet fuel’s 2024 demand growth is expected to be just 230k b/d, taking the total to 7.4m b/d – 94% of 2019 levels, Reuters said.
  • Meanwhile, flight activity is 105.9% of pre-pandemic 2019 levels.
  • Efficiency gains in aircraft alone have cut consumption by 10%.
  • Rystad forecasts jet fuel demand to hit 8m b/d by 2026, while the IEA think jet fuel demand will reach a new record later this decade.
  • Jet fuel has been the single biggest contributor to oil’s post pandemic demand growth, accounting for almost 50% of the total increase, according to the IEA.
  • This is due to it being particularly hard hit during the pandemic, down to 4.7m b/d in 2020, compared to 7.9m b/d in 2019.
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While global air traffic is now exceeding pre-pandemic levels, demand growth for jet fuel has not caught up due to more efficient aircraft, according to Reuters.

  • Jet fuel’s 2024 demand growth is expected to be just 230k b/d, taking the total to 7.4m b/d – 94% of 2019 levels, Reuters said.
  • Meanwhile, flight activity is 105.9% of pre-pandemic 2019 levels.
  • Efficiency gains in aircraft alone have cut consumption by 10%.
  • Rystad forecasts jet fuel demand to hit 8m b/d by 2026, while the IEA think jet fuel demand will reach a new record later this decade.
  • Jet fuel has been the single biggest contributor to oil’s post pandemic demand growth, accounting for almost 50% of the total increase, according to the IEA.
  • This is due to it being particularly hard hit during the pandemic, down to 4.7m b/d in 2020, compared to 7.9m b/d in 2019.