Jet fuel demand will surge up to 30% this summer, as domestic flights in the U.S. are fully recovered from the pandemic hit; according to a report by Arkansas news media, U.S. airports are their busiest time since the pandemic began, prompting a new wave of jet fuel demand.
Firstly, according to Transportation Security Administration data, passengers checking through security at U.S. airports have surged to 1,85 million this Sunday; the highest point since March 2020.
Secondly, the pace of travelers has in fact surged steadily for the past months, and is now only 30% lower than the levels seen in 2019. In addition, numbers of travelers are expected to surge even more when the official U.S. holiday season starts, after Memorial Day.
Thirdly, as reported by the Arkansas Democratic Gazette, most of these flights are coming through the domestic flights market; overseas or international flights remain weakened; at least until the summer of 2022, according to George Ferguson, senior aerospace and airline analyst at Bloomberg Intelligence.
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Jet Fuel rising, an uplift for refiners
Moreover, United Airlines CEO, Scott Kirby, confirmed during a Bloomberg Intelligence Business virtual event that his domestic leisure travel is more than a 100% recovered from the pandemic. “We think this summer is going to be a good summer. The cheaper you can deliver seat miles, the more capacity you put in the market place; the closer you are to 2019 levels.” He said.
Consequently, jet fuel demand has more than doubled since the worst times of the pandemic; it will surge 30% this summer, when compared to the first quarter of the year, as expected by the industry. This would uplift U.S. refiners who had been enduring tight margin profits for more than a year.
Furthermore, for the third quarter of the year, jet fuel demand will likely reach 1,47 million barrels a day; which will be more than 50% higher than the year before; according to the Energy Information Administration.
Finally, airlines will keep up with the increasing demand. United Airlines said this Monday it will run 80% of its pre-pandemic schedule within the U.S; while Allegiant Travel Company said it will hire 200 pilots in the coming months due to rising travel demand.
