Ministry of Business Innovation and Employment figures released this week show there was a 3.4 day increase in jet fuel stocks compared with the last data collected on 29 Mar.
There’s now total jet fuel stock for 50.1 days. But the intensifying war following the US-Israel attack on Iran is pushing up oil prices even further and forcing more airlines to cut flying as they face ever-tightening supplies.
Jet fuel prices averaged USD195 a barrel week ending 27 Mar, says IATA, up from USD96 in late Feb.
. . . Airline Response
Air New Zealand was one of the first airlines to cut flights, scrubbing 1100 services, but since then United Airlines has announced it will cut flights for the next two quarters.
UA joined JetBlue in increasing checked bag fees, with charges up from 03 Apr for point of sale in the Americas.
Other airlines reported to be considering or implementing network cuts include Ryanair, Lufthansa and Scandinavian Airlines which is cutting 1000 flights this month. But Middle East carriers are rebuilding capacity.
Qatar Airways will increase to 120 destinations by mid May with Brisbane joining three other Australian cities by then. However, Auckland is still off the airline’s latest announcement of restored services.
QR has been severely affected by airspace closures but FlightRadar24’s Gulf airline recovery index shows Emirates flying more than 70% of services and Etihad more than 60% of its schedule by 04 Apr.
EY is reportedly holding or cutting fares sharply in spite of high fuel prices to help boost demand in May and Jun.
. . . The Outlook
Saudi publication Arabian Gulf Business Insight reports jet fuel prices will probably rise further. James Noel-Beswick, Sparta Commodities head of commodities in Geneva, says airlines may add emergency fuel surpluses to tickets already sold.
“That’s a supposition but I don’t see how else carriers could make the finances work.” He warns the trigger for prices to plateau won’t be additional jet fuel supplies, but from reduced demand.
