Jet fuel
Overview
Jet fuel market volatility, whether from crude prices, supply issues from refining capacity, or ongoing regulation changes, is a continual risk to your bottom line.
Having a choice in fuel pricing is the best way to mitigate risk and stay on top of market changes. Argus constructs price indexation in a way that is appropriate for each market. By doing so, market participants can align their day-to-day operations, improve management of fuel costs and directly impact their net earnings.
Jet fuel makes up more than 40% of an airline’s total operating expense. The rise in importance of sustainable aviation fuel (SAF) from government mandates and self-regulations from airlines has a direct implication on these operating costs.
Argus helps the jet fuel market participants to make informed decisions and optimize their strategies with price assessments and information on deals done for conventional jet fuel and SAF, as well as the latest market-moving news, in-depth analysis, supply and demand dynamics, and price forecasts.
Latest jet fuel news
Browse the latest market moving news on the global jet fuel industry.
Australia to underwrite refiners' spot fuel trades
Australia to underwrite refiners' spot fuel trades
Sydney, 10 April (Argus) — Australian government agency Export Finance Australia (EFA) will underwrite the financial risk of spot-market fuel and crude oil purchases by refiners Viva Energy and Ampol to support the country's fuel imports, energy minister Chris Bowen announced on 9 April. Under the agreement, the government will be able to direct where the additional fuel is distributed, prioritising regions facing tighter supply. The EFA is also finalising similar agreements with other companies. Government support will enable refiners to secure cargoes that would otherwise be considered uncommercial because of volatile prices and high spot-market costs. The EFA will update its public register with each transaction, Bowen said on 10 April. This falls under legislation passed last week that allowed the EFA to underwrite critical imports such as fuel and fertilizer, reducing the commercial risk for buyers as part of efforts to manage supply pressures linked to Iran's effective blockade of the strait of Hormuz. Under the legislation, the EFA can insure, indemnify, guarantee, lend, or enter into other arrangements including with third parties to support activities such as buying, selling, transporting, or storing a strategic material. Gasoil, jet fuel, crude oil and fuel oil are listed as strategic materials, as well as "any material experiencing supply chain disruptions". Australia's oil products demand averages nearly 1.1mn b/d, but its refineries supply only about one-fifth of that. This leaves the country heavily dependent on imports, leading to supply concerns since the US–Iran conflict began in late February. Ampol's 109,000 b/d Lytton refinery in Brisbane and Viva's 120,000 b/d Geelong refinery are the country's only major operating refineries. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Delta expects fuel costs to double in 2Q: Update
Delta expects fuel costs to double in 2Q: Update
Adds more details from analyst call Houston, 8 April (Argus) — Delta Air Lines expects its jet fuel costs to roughly double in the second quarter as the conflict in the Middle East continues to restrict supply. The company expects an all-in fuel price of $4.30/USG during the second quarter, Delta said this morning in its quarterly earnings call. Supply constraints and higher prices due to the war will add more than $2bn in additional fuel costs for Delta in the second quarter, chief executive Ed Bastian said on the call. The company's first quarter adjusted fuel price was $2.62/USG, up nearly 7pc from a year earlier, with total fuel expenses totaling $2.6bn, a $330mn increase. Delta's 190,000 b/d Monroe refinery in Trainer, Pennsylvania, helped shave $0.06/USG off of its fuel costs. The US and Iran agreed to a two-week ceasefire starting late Tuesday, but so far there are few signs that the flow of tankers through the strait of Hormuz has picked up significantly. Earlier this week the US Energy Information Administration yesterday increased its jet fuel price outlook to $4.22/USG during the second quarter, compared with just $2.74/USG during the first quarter. That estimate assumed a full resumption in tanker traffic through the strait by the end of April. Delta intends to limit capacity growth to flat year-on-year "until the fuel environment improves," Bastian said, which will help the company better manage higher jet fuel costs. Delta's "main cabin" capacity contracted by 3pc in the first quarter compared to the prior year. The refinery is projected to add $300mn in profit during the second quarter, based on current prices, Delta said. Delta's first-quarter revenue passenger miles — a measurement of miles flown by paying passengers — increased by 1pc annually to 56.47bn miles. Available seat miles — a measure of capacity — also increased by 1pc to 69.16bn in the first quarter. The company expects more than 10pc annual revenue growth in the second quarter as it sees continued strength in corporate and consumer demand. First-quarter operating revenue was up by 13pc annually to $15.85bn while the company reported a $289mn net loss — compared to a $240mn profit in the first quarter 2025. Fleet operations Delta took delivery of eight aircraft during the first quarter and ordered 95 additional aircraft, including Airbus and Boeing 787. The company announced new routes between Austin and Phoenix and plans to expand services from Austin to Bozeman, Montana, starting next winter. This will bring the airline's total destinations out of Austin to 30 by the end of the year. There will also be expanded services from Los Angeles to three destinations in Florida this winter, and a new nonstop flight from New York to Orange County, California, will begin on 7 May. By Amanda Hilow Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Delta expects fuel costs to double in 2Q
Delta expects fuel costs to double in 2Q
Houston, 8 April (Argus) — Delta Air Lines expects its jet fuel costs to roughly double in the second quarter as the conflict in the Middle East continues to restrict supply. The company expects an all-in fuel price of $4.30/USG during the second quarter, following an adjusted fuel price of $2.62/USG in the first quarter, Delta said this morning in its quarterly earnings call. The first quarter fuel cost reflects a 7-8pc increase compared to the same period last year. The US and Iran agreed to a two-week ceasefire starting late Tuesday, but so far there are few signs that the flow of tankers through the strait of Hormuz has picked up significantly. The US Energy Information Administration yesterday increased its jet fuel price outlook to $4.22/USG during the second quarter, compared with just $2.74/USG during the first quarter. That estimate assumed a full resumption in tanker traffic through the strait by the end of April. The Argus US jet fuel index averaged $2.89/USG during the first quarter, up by 65¢/USG, or 29pc, compared to the same period of 2025. The index — an average of spot prices across the US — sits at roughly $4.80/bl, having risen by $2.30/USG since the conflict started with Iran on 28 February. By Amanda Hilow Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US-Iran ceasefire weighs on European oil product prices
US-Iran ceasefire weighs on European oil product prices
London, 8 April (Argus) — European middle distillate and gasoline prices have dropped on Wednesday, 8 April, after the US and Iran agreed overnight to a two-week ceasefire that could see oil flow resume through the strait of Hormuz, but prices remain well above pre-war levels. Front-month Ice April gasoil futures dropped by 18.3pc to $1,247.75/t at 10:30 BST (09:30 GMT). The contract serves as the underlying price against which European diesel and jet cargoes and barges trade. Benchmark non-oxy gasoline barges were trading at $945.50/t at the same time, down by 9.9pc from the close on 7 April. Front-month Ice gasoil futures and benchmark non-oxy gasoline barges prices were still higher than pre-war levels of $752.75/t and $690/t on 27 February, respectively. The drop in European oil product prices has followed a sharp decline in front-month Ice Brent futures values, which fell 15.1pc since 7 April to trade at $94.04/bl at 10:30 BST. European middle distillate values have fallen more steeply than gasoline on the ceasefire news, given that the continent is a net importer of the former and a net exporter of the latter. Diesel and jet arrivals from the Mideast Gulf respectively made up around a fifth and half of total EU, UK and Norwegian imports last year, according to Kpler. The US and Iran said on 7 April that they would halt hostilities for a two-week period to finalise a peace deal. But their public statements differ on the status of navigation through the strait of Hormuz and uncertainty regarding vessel transit remains. The effective closure of the strait of Hormuz since the US-Israel war against Iran began on 28 February has weighed on loadings of diesel and jet from the Mideast Gulf over March. Arrivals are expected to ease this month, reflecting lower March cargo bookings from the Mideast Gulf that would typically now be starting to reach European ports. The drop in Ice gasoil futures is unlikely to translate into a rise in distillate bookings from the Mideast Gulf to European ports for now. The east-west gasoil paper spread remains at a discount, meaning that Europe would still struggle to compete for available volumes from the Mideast Gulf and India. The spread between Ice gasoil and Singapore gasoil swaps has narrowed somewhat on the session to a discount of around $150/t, according to one trader, down from around $210/t. The US remains a more likely source for European diesel imports, one European diesel trader told Argus , given that the spread between US Gulf coast and northwest European diesel values is much narrower. Europe's gasoline values have also risen since the war began, even though the region is a net exporter of the fuel. This is because of tighter east of Suez availability of crude and naphtha and condensates from the Mideast Gulf. Traders have booked numerous cargoes to ship European gasoline and gasoline blending feedstock naphtha to destinations east of Suez since the war broke out, likely bidding up European gasoline values to secure fixtures for destinations in Asia-Pacific. The ceasefire announcement has had little effect so far on the current structure in the European distillate and gasoline markets. The Ice gasoil futures structure remained in steep backwardation, with front-month at a $110.75/t premium to the second-month contract at 10:30 BST, compared with a $9.75/t spread on 27 February. The Eurobob oxy gasoline swap curve was showing front-month May swaps at a premium of $29.25/t over second-month June swaps Wednesday morning. The Eurobob oxy gasoline structure is typically in contango at this time of year as traders price in greater demand and blending costs from May onwards. By George Maher-Bonnett and Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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