Are the rising jet kerosene prices bothering the US Aviation industry?
- 30-Mar-2022 3:47 PM
- Journalist: Patricia Jose Perez
American domestic airlines and industries have been seeing a surge from the beginning of the year as the spring break starts with more and more people planning to take their vacations after two long years of pandemic restrictions. Although the domestic aviation sector doesn’t generate high revenues as the international air travels, the overwhelming activity of domestic airlines have kept the aviation staffs and executives smiling and their business blooming. American Airlines CEO Doug Parked has stated that the industry has hit a one-day record-high revenue, earlier this month. In fact, they had two days with 15% of higher revenues than any other day.
International air travel, especially to Europe has been lagging due to the invasion of Ukraine by Russia, the same reason why Jet kerosene prices have been on a hike too. The jet fuel cost rose drastically because of the skyrocketing prices of upstream crude oil. Jet Kerosene in the US has been on a rise because of increased demand for domestic aviation, low production in US and higher import prices owing to Russia - Ukraine conflict. Although Jet kerosene has been rising and the travel industry usually tries to compensate for the price hike by raising fare costs, this rise in aviation fares has not prevented people from flying in the US.
According to ChemAnalyst, jet kerosene prices in the United States will continue to increase because of high priced upstream crude oil and the steadily rising demand from the aviation industry due to spring break. The uprise trend of Jet Kerosene prices may change only when the demand from the aviation sector cools down amidst high fuel prices. But the domestic airlines in the United States is seeing record-breaking booking in recent times. So, the only way of altering the uprising trend of US Jet Kerosene prices is when the US finds better imports of upstream crude oil.