Australian tourism slump to hit jet fuel demand

Australia's tourist numbers are on course to hit a seven-year low in the July 2019 to June 2020 fiscal year, indicating further weakness in jet fuel demand.

Total arrivals — including tourists and residents — at Australian airports and sea ports were 15.94mn in 2019-20, according to preliminary data from the Australian Bureau of Statistics (ABS). This is 26pc down on 2018-19 and the lowest since 15.45mn in 2012-13.

The decline reflected a sharp drop in tourist arrivals and residents returning from overseas trips because of travel restrictions imposed to combat the Covid-19 pandemic.

The total number of arrivals in June dropped to 25,770 from 19,400 in May and was more than 99pc down from 1.56mn in June 2019. There were 40,000 departures in June, up slightly from 35,400 in May but just a small fraction of 1.8mn in June 2019.

Flights leaving Australia for international destinations account for more than 60pc of Australia's jet fuel sales. The total number of passenger departures in 2019-20 fell by 28pc to 15.27mn from a record 21.16mn in 2018-19 and was the lowest since 15.2mn in 2012-13.

Australian jet fuel demand averaged 120,000 b/d in July-April, the first 10 months of the 2019-20 financial year, down from 162,500 b/d in 2018-19.

International jet fuel sales declined to 75,000 b/d in July-April from 103,000 b/d in 2018-19, the lowest since 74,000 b/d in 2014-15. Jet fuel use for domestic travel fell to 45,000 b/d in July-April from 59,000 b/d in 2018-19.

By Kevin Morrison