U.S. Airlines’ January 2023 Fuel Cost per Gallon Up 4.3% from December 2022; Aviation Fuel Consumption Down 0.7% from Pre-Pandemic January 2019 (2024)

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U.S. Airlines’ January 2023 Fuel Cost per Gallon Up 4.3% from December 2022; Aviation Fuel Consumption Down 0.7% from Pre-Pandemic January 2019? ›

The cost per gallon of fuel in January 2023 ($3.28) was up 14 cents (4.3%) from December 2022 ($3.14) and up $1.37 (71.7%) from January 2019. Total January 2023 fuel expenditure ($4.63B) was up 0.2% from December 2022 ($4.63B) and up 70.6% from pre-pandemic January 2019.

The cost per gallon of fuel in December 2023 ($2.80) was down 22 cents (7.2%) from November 2023 ($3.01) and up $0.79 (39.5%) from December 2019.

Latest Jet Fuel & 100LL Aircraft Fuel Prices

The national average price for jet fuel is $6.42 per gallon. The national average price for 100LL aircraft fuel is $6.82 per gallon. The national average price for Sustainable Aviation Fuel (SAF) is $9.00 per gallon.

Cost of Fuel for Airlines

Fuel costs account for about 22% of operating expenses. 1 Many companies have programs to hedge fuel costs. They buy futures contracts to lock in their costs for a set period of time, turning it into a fixed expense.

Jet Fuel Costs Less

But the need for a higher energy fuel made the aviation industry look for alternative fuels. With a Boeing 747 burning up to one gallon of fuel every second, it's lucky that kerosene-based jet fuel is cheaper than gasoline!

Owing to its low production volume, Sustainable Aviation Fuel (SAF) typically costs 3-5 times as much as traditional jet fuel, depending at any given time on the price of fossil jet fuel, the cost of renewable feedstocks, the related processing costs, and more.

Higher Fares

But the new fuel is in short supply and can be more than double the price of normal jet kerosene, leaving airlines little choice but to pass the cost onto passengers. It means little price respite for flyers who've been whacked by soaring prices since air travel resumed after the pandemic.

With today's fuel prices, it costs about $450,000 to fill up a Boeing 747, depending on your market. By contrast, the Gulfstream G280, a popular business aviation aircraft, costs around $8,000 to fill.

One common method is for airlines and other aviation companies to purchase fuel on the spot market, either directly from oil companies or through fuel brokers. And in this case, the aviation company will typically pay for the fuel using a combination of cash and credit.

It currently costs $36,000 dollars to fuel a 737. Last year to fill the same jet cost $24,000. “It'll be a major consideration of where we go, If we go,” said Rebecca Segura who is headed back to the Cape from Puerto Rico. For others COVID-19 concerns meant less travel so even higher prices won't keep them grounded.

How many MPG does a 747 get? ›

second, or 5 gallons per mile. Reversing this gives us. the figure of 0.2 miles per gallon of fuel.

A full tank can get a Boeing 747-8i to fly 8,000 miles or more. However, the distance varies depending on speed, aircraft weight, etc.

Travel Expected to Continue to Increase

The International Air Transport Association, which represents about 320 airlines responsible for 83% of global air traffic, has predicted the average cost of jet fuel in 2024 to be roughly $2.7095/gal. That's up from the $2.6643/gal average it forecast for 2023.

“Once the proposed amendments are implemented in 2024, they are projected to potentially increase the price of gasoline by an average of $0.37 per gallon,” the report read. That means drivers can expect prices at the pump to hit $5 a gallon by spring and continually see an increase.

With today's fuel prices, it costs about $450,000 to fill up a Boeing 747, depending on your market. By contrast, the Gulfstream G280, a popular business aviation aircraft, costs around $8,000 to fill.

U.S. Airlines' January 2023 Fuel Cost per Gallon Up 4.3% from December 2022; Aviation Fuel Consumption Down 0.7% from Pre-Pandemic January 2019.