Airline
Operations
Low Fuel Consumption and its Impact on the Cost of Airline Operations
Given the relevance of the air transport system for the economy, it is important that industry and policy makers are aware of changes and likely future impacts driven by increased fuel prices
by Anil Chopra
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s per International Air Transport Association (IATA), the global airline industry’s fuel bill was $188 billion in 2019, accounting for around 23.7 per cent of operating expenses at an average price of $65 per barrel Brent. This was an increase of 4.7 per
cent over 2018, and is almost 50 per cent more than the $127 billion fuel bill for 2006, which accounted for 28.4 per cent of operating expenses at $65.1 per barrel Brent. In 2020, the fuel bill was forecast to be $182 billion, accounting for 22.1 per cent of operating expenses at around $63 per barrel Brent. However,
PHOTOGRAPH: Indian Oil
Fuel is nearly a quarter of global airline industry's operating expenses
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SP’S AIRBUZ • Issue 5 • 2020
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