FACT SHEET: Fuel

The global airline industrys fuel bill is forecast to total $210 billion in 2013 (accounting for
30% of operating expenses at $108.8/barrel Brent of oil).
This is an increase of $2 billion over 2012 and is almost 5 times 2003s fuel bill of $44 billion
(that accounted for 14% of operating expenses at $28.8/barrel Brent).
In 2014 the fuel bill is estimated at $212 billion (accounting for 30% of operating expenses
at $108.0 per barrel Brent).
Industry profits of $10.6 billion are forecast for 2013 and following profits of $18.0 billion in
2014.

Industry Fuel Costs and Net Profits

Updated: 06/2014 Next Update:12/2014

Source: Industry Financial Forecast Table (IATA Economics)
[PC6]

JUNE 2014

Fuel Impact on Operating Costs

% of Operating
Costs

Average Price per

Break-even Price
Barrel of Crude (US$) per Barrel (US$)

Total Fuel Cost

2003

14%

US$28.8

US$23.4

43.95

2004

17%

US$38.3

US$34.7

64.96

2005

22%

US$54.5

US$51.9

90.797

2006

26%

US$65.1

US$68.2

115.5089131

2007

27%

US$73.0

US$81.9

133.3631473

2008

33%

US$99.0

US$83.2

186.5653602

2009

26%

US$62.0

US$59.1

122.7792731

2010

26%

US$79.4

US$90.0

138.1365367

2011

29%

US$111.2

US$115.7

174.3144239

2012

31%

US$111.8

US$115.4

207.6214826

2013 F

30%

US$108.8

US$114.9

210.2601025

2014F

30%

US$108.0

US$118.0

212.2792276

Updated: 06/2014 Next Update:12/2014

Source: Industry Financial Forecast Table (IATA Economics)
[PT6]

Impact of Refinery Margin on Fuel Costs

40

30%

35
30

25%

25
20%

20.5
17.6

17.4

18.5

20

15%
15
10%

10.0

36.0
18.4

5%

17.1

17.7

2005

2006

10

5.0

8.5

0%

0
2003

2004

2007

2008

2009

Additional Cost due to widening of margin from 2003 level ($b)

2010

2011

2012

2013F

2014F

Crack spread (% of crude price)

Updated: 06/2014 Next Update:12/2014

Source: Industry Financial Forecast Table (IATA Economics)
[PC5]

JUNE 2014

Additional Cost ($ billion)

Crack Spread (% of crude price)

PC5

35%