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.
Ryanair cuts winter flights on unhedged fuel exposure
Ryanair cuts winter flights on unhedged fuel exposure
London, 2 September (Argus) — European airline Ryanair will cut services in the coming winter to reduce exposure to higher costs for unhedged jet fuel, and said it may increase ticket prices. Ryanair expects 214mn passengers in the year to 31 March 2027, down from its previous forecast for 216mn. The company did not say how many flights or which routes it will cut, but they will be during the "unprofitable" November-March period when air travel demand stoops to its annual nadir. Ryanair expects passenger demand to be broadly flat year-on-year in this period. Ryanair has hedged 80pc of its jet fuel demand for its 2027 financial year, but significantly higher jet prices means unhedged fuel costs much more. Hedges using crude or gasoil derivatives may be less successful if jet fuel spreads remain wide. Jet fuel prices in northwest Europe averaged almost $1,300/t in August, about 80pc higher on the year, Argus assessments show. The cut to winter services will reduce Ryanair's projected losses over winter by €70mn-100mn ($81mn-116mn), it said. If fuel prices stay high, Ryanair said short-haul airfares will have to rise in Europe. Airlines that are not well-hedged will struggle this winter, it said, which could force them to trim capacity or even lead to their demise. Higher jet fuel prices have weighed heavily on airlines' financial performance , and caused the US' Spirit Airlines to shut down earlier this year. Ryanair still expects to make a profit in its 2027 financial year, although it declined to offer a forecast. The airline made more than €2bn in profit in the 2026 financial year . The airline carried 22.2mn passengers in August, up by 6pc on the year. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Outbound Hormuz transits drop to zero: Update
Outbound Hormuz transits drop to zero: Update
Updates throughout New York, 25 August (Argus) — No vessels exited the strait of Hormuz over the past 24 hours while Oman and Iran resume talks on vessel management through the waterway. A total of four vessels entered the strait of Hormuz on 24 August, including three vessels on the northern transit lane and one tanker on the southern lane with no outbound transits recorded, according to maritime security firm Windward.This puts vessel traffic through the waterway at around 3pc of pre-war figures. Oman's Foreign Minister Badr Albusaidi on 24 August arrived in Tehran, where Iran and Oman are currently holding talks on the strait of Hormuz. The two countries issued a joint statement on 25 August saying discussions were held on a proposed framework that includes the establishment of a temporary joint maritime corridor through the strait and an agreement to carry out a joint project for mine clearance. "Technical negotiations between the two sides will continue with the aim of reaching an agreement on a permanent maritime corridor, the future administration of the strait, as well as mechanisms for information exchange, traffic management, and the provision of maritime and security services," the statement reads. Iran and Oman engaged in negotiations at the start of August on management of vessel traffic through the strait of Hormuz which would give Iran complete oversight over vessels entering the Mideast Gulf, which prompted the international shipping community to express concern that the proposed plan would fall short of the principles of freedom of navigation. US president Donald Trump said in a social media post on Tuesday that "all mines have been removed and/or detonated from within the international waters of the Strait of Hormuz", warning Iran not to place new mines, citing a "Zero Tolerance policy on mine placement in full force and effect". Traffic through the strait of Hormuz since the outbreak of the war at the end of February has largely been bifurcated between the northern Iranian-controlled lane and the southern, US-assisted transit lane, with the center lane used prior to the conflict believed by shippers to be mined. The amount of vessel traffic on the southern lane in particular has come under increased scrutiny in recent weeks with the US claiming higher amounts of traffic through the waterway than can be corroborated independently. There may have been at least one other vessel transit via the southern lane that was aborted after an oil tanker was hit off the coast of Oman, disabling the vessel but leaving the crew uninjured, according to the UK Maritime Trade Organization (UKMTO). The strike is likely to be an enforcement action by Iran, which is seeking to consolidate control over traffic through the strait by attacking vessels on its non-preferred transit lanes. Iranian attacks on vessels traveling near Oman have accounted for 14 out of the 16 projectile strike incidents on commercial vessels in the strait reported since 6 July, per UKMTO. Meanwhile, Iran's newly established Persian Gulf Strait Authority's declaration of 46 vessels as non-compliant is raising concerns that more shipowners may choose to avoid Mideast Gulf trades altogether. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iran’s blacklist threatens Gulf product STS flows
Iran’s blacklist threatens Gulf product STS flows
Dubai, 25 August (Argus) — Iran's new tanker blacklist threatens to restrict the ship-to-ship (STS) transfers that have helped keep Mideast Gulf product exports moving through the strait of Hormuz, with shipping sources warning that further additions could disrupt the workaround. Listed vessels face penalties on future Hormuz transits, while ships carrying out STS transfers or other commercial operations with them could also be deemed non-compliant, Iran's Persian Gulf Strait Authority (PGSA) said on 24 August. Shipping sources warned that further additions to the list could reduce the pool of shuttle tankers available to ferry cargoes through the strait. The workaround relies on shuttle tankers carrying cargoes through the strait before transferring them to onward vessels in safe-water STS operations off Oman. At least two vessels on the PGSA's non-compliant list have recently carried out such operations involving oil products, ship-tracking data from Kpler show. Adnoc-owned Jarnain carried out at least two STS transfers this year. It loaded at Ruwais in the UAE in early June before transferring around 600,000 bl of naphtha to the Tortuga , which delivered the cargo to South Korea's Yeosu refinery on 11 July. Jarnain loaded again at Ruwais in early August before transferring around 700,000 bl of oil products for delivery to northwest Europe. Another listed vessel, the Navig8 Messi , transferred around 500,000 bl of gasoil off Sohar in Oman on 9 August after loading at Ruwais on 24 July. Vessels that have recently transited the strait of Hormuz along the Omani side are coming under closer scrutiny, as the market assesses whether voyage and STS histories could influence further additions to the PGSA list, shipping sources said. This route through Hormuz is also considerably more expensive. Additional war risk premiums (AWRPs) for a Long Range 1 (LR1) tanker are currently six to seven times higher than on the Iranian-designated route, a shipbroker said. No new formal charter party clauses or compliance guidance have emerged, but brokers said PGSA-listed vessels could become harder to book or use for STS operations. Despite the growing risk, STS transfers remain an important option for moving oil products out of the Mideast Gulf while conventional transit through the strait of Hormuz remains disrupted. Seven vessels carried out STS activity in August, only slightly below eight in July, Kpler data showed. At least four of the August vessels were carrying naphtha and one jet fuel, while three were Kuwaiti-owned and the remainder were Adnoc-chartered. At least seven Adnoc-chartered vessels and seven Kuwaiti-owned vessels have carried out STS transfers since the activity picked up in May. More product cargoes are set to move via the same STS route this month. Last week, Adnoc chartered at least three vessels to ship out 110,000t of naphtha and 60,000t of jet fuel over 28 August-3 September, underscoring the continued reliance on offshore transfers to keep product flows moving out of the region. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Outbound Hormuz transits drop to zero
Outbound Hormuz transits drop to zero
New York, 25 August (Argus) — No vessels exited the strait of Hormuz over the past 24 hours, following increased Iranian enforcement action including an attack on an oil tanker traveling within the US-supported southern transit corridor near the Omani coast. A total of four vessels entered the strait of Hormuz on 24 August, including three vessels on the northern transit lane and one tanker on the southern lane with no outbound transits recorded, according to maritime security firm Windward. The amount of vessel traffic on the southern lane in particular has come under increased scrutiny in recent weeks with the US claiming higher amounts of traffic through the waterway than can be corroborated independently. There may have been at least one other vessel transit via the southern lane that was aborted after an oil tanker was hit off the coast of Oman, disabling the vessel but leaving the crew uninjured, according to the UK Maritime Trade Organization (UKMTO). Meanwhile, Iran's newly established Persian Gulf Strait Authority's declaration of 46 vessels as non-compliant is raising concerns that more shipowners may choose to avoid Mideast Gulf trades altogether. The strike is likely to be an enforcement action by the Iranians who are seeking to consolidate their control over traffic through the strait of Hormuz by attacking vessels on their non-preferred transit lanes. Iranian attacks on vessels traveling near Oman have accounted for 14 out of the 16 projectile strike incidents on commercial vessels in the strait of Hormuz reported since 6 July, per UKMTO. Traffic through the strait of Hormuz since the breakout of the war at the end of February has largely been bifurcated between the northern Iranian-controlled lane and the southern, US-assisted transit lane, with the center lane used prior to the conflict believed by shippers to be mined. US president Donald Trump said in a social media post on Tuesday that "all mines have been removed and/or detonated from within the international waters of the Strait of Hormuz" warning Iran not to place new mines citing a "Zero Tolerance policy on mine placement in full force and effect." But shippers avoiding Iran's northern corridor will likely remain concentrated on Omani coastline transits as long as Iranian attacks continue even if the center of the strait was totally demined just given the increased distance from drone and missile launch sites. Meanwhile, Oman's Foreign Minister Badr Albusaidi on 24 August arrived in Tehran, where Iran and Oman are currently holding talks on the strait of Hormuz. Iran and Oman engaged in negotiations at the start of August on management of vessel traffic through the strait of Hormuz which would give Iran complete oversight on vessels entering the Mideast Gulf, which prompted the international shipping community to express concern that proposed plan would fall short of the principles of freedom of navigation. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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