At the beginning of January 2021 in the year 2021, the cost in Jet A1 was approximately $450 per metric tonne. A metric tonne is 1,000 KG or 2,204 pounds that’s about $0.45 or PS0.33 per kilogram.
The price is 34% less than one previous year (January 2020) which was when the price was Jet A1 was approximately $650 per metric ton or around $0.65 per kilogram.
Because of the decline in the price of oil, brought by the Covid-19 virus At one time (May 2020), Jet A1 was at a low of $200 per metric tonne, which is roughly $0.20 per kilogram.
1 KG (kilograms) = 2.2 LBS (pounds)
1 MT (metric tonnes) is 1,000 KGS
The cost for jet fuel (known by the name of Jet A1) is closely to the price of oil, which fluctuates on an ongoing basis. In May of 2020 the cost for Jet A1 was down 69 percent from the previous twelve months.
The cost of jet fuel in January 2015 is:
- 170.8 Cents (US dollars) per Gallon
- 1 litre equals 0.3125 penny (pound sterling)
- 1 litre = 0.40 Euros
It is important to remember that this does not include the cost of the fuel or the charge for refueling the aircraft. Thus, the amount airlines pay for fuel per kilogram is greater than the figures listed above, subject to specifics of the contract. There is currently no tax for aviation fuel within Europe.
The Jumbo Jet (Boeing 747-400) flying from London to New York burns approximately 70,000 kilograms of fuel. Because jet fuel is estimated to have a specific gravity of 0.85 (the measurement of density) that amounts to an amount of 82,300 milliliters.
Based on these numbers it is estimated that the cost of fuel needed for a flight between London up to New York being operated by B747 Jumbo Jet is about PS25,500 (EUR32,500) Based on 450 passengers would cost the price of PS57 (EUR73) for each person.
Fuel Price Hedging
The price airlines spend on their fuel can vary considerably based on the prices they’ve “hedged” the fuel at. Hedging is when you agree that you will pay the same cost for fuel for the duration of a specified time to the future.
This can help an airline lower risk and fixed costs that can be crucial in financial planning. For instance, a set quantity of gasoline, be 5 million tons could be backed by $600 per metric tonne over 12 months.
The airline will pay $600 for each metric tonne, regardless of any changes in fuel prices at this time. If the price of fuel increases the airline will be protected from the increase, whereas in the event of a decline in the cost of fuel it will end up spending more on fuel than it could have paid.
Hedging usually is built around purchasing a specific amount of fuel. If an airline ceases to fly in the event of the COVID-19 crisis and does not utilize the fuel that they’ve secured, they will need to be responsible for their fuel hedged when they don’t actually use it, which could cause losses in financial terms.
What’s Jet A fuel?
Jet fuel is specially designed for engines powered by gas turbines in aircraft. There are two main kinds of jet fuel: Jet fuel (which is widely used throughout the United States and some locations in Canada) and Jet A-1 fuel (used across the globe).
The third kind, Jet B, is not often utilized. The main distinction between Jet A and A-1 fuels is their freezing points. Fuel has a lower freezing point. A fuel comes with a greater freezing point of -40deg Celsius (compared to the -47deg C of A-1).
Price for Jet A fuel
The cost of Jet fuel can vary significantly more than car fuel, with prices typically fluctuating by more than 50% based on the size of the airport. A lookup on the website AirNav.com shows geographic variation, as well as variations based on what size the airport. GlobalAir.com is another website that shows regional averages and local prices for fuel. Here are some examples (please keep in mind that these numbers were in use when I wrote the article):
$8.864 Logan International Airport
$4.69 Marshfield Municipal Airport, George Harlow Field
$7.97 Los Angeles International Airport
$4.87 Van Nuys Airport, Van Nuys, CA
$8.815 O’Hare International Airport
$4.87 Bolingbrook’s Clow International Airport, Bolingbrook, IL
In addition, at certain airports, Jet-A pricing varies according to the service. For instance, in the Lawrence Municipal Airport which is located in Lawrence, MA, prices are currently ranging between $5.20-$6.35.
Jet Burn Rates A fuel
While the price on Jet A is a big element of the fuel price however, the rate of burn is also a major element. In general, you can expect that older jets use more fuel than the newer jets and that larger jets will use larger amounts of fuel than jets with smaller capacities. Here are some common burn rates:
Very Light Jets
Embraer Phenom 100
Gallons of fuel consumed per hour, 125
Cessna Citation Mustang
Hour 100 gallons hour 100
Embraer Phenom 300
Gallons of fuel consumed per hour 175
Mid Size Jet
Fuel Consumption, Gallons per hour, 250
Gallons of fuel consumed per hour 372
Fuel Consumption, Gallons per hour 358
As you can see, there is the possibility of a large variation in prices and burn rate and burn rate, both of which can impact your expenses if you have private jets. If you charter with jet cards, chartering, Jet card leasing, or possess a small fraction of the jet Always inquire about the cost of fuel to be sure you are getting the complete pricing information.