Many airlines hit hard by jet fuel price swings, not all can hedge, IATA says
Key takeaways
- Many airlines hit hard by jet fuel price swings, not all can hedge, IATA says.
- Some airlines with more elaborate hedging strategies get a bit of a cushion, Daniel Chereau told the S&P Global Energy Middle East Petroleum and Gas Conference.
- The Middle East supplies much of the world s jet fuel, but its ability to produce and export the fuel has been severely curtailed by the effective closure of the Strait of Hormuz and attacks on energy installations.
Many airlines hit hard by jet fuel price swings, not all can hedge, IATA says. A logo of the International Air Transport Association (IATA) is displayed, in Geneva, Switzerland, April 28, 2026. REUTERS/Denis Balibouse · Reuters By Robert Harvey Wed, June 3, 2026 at 7:47 PM GMT+7 1 min read By Robert Harvey
LONDON, June 3 (Reuters) - Many airlines have been hit hard by price swings in the jet fuel market, and some are not in a position to hedge their exposure, the International Air Transport Association s head of fuel said on Wednesday.
Some airlines with more elaborate hedging strategies get a bit of a cushion, Daniel Chereau told the S&P Global Energy Middle East Petroleum and Gas Conference. However, the impact of soaring jet fuel refinery profit margins, known as crack spreads, has not been helpful for the airline industry, he added.