IATA Says Jet Fuel Prices Could Take Months to Recover

(MENAFN) Even if the Strait of Hormuz reopens and remains navigable, global jet fuel prices and supply chains will need months — not weeks — to fully recover, the head of the International Air Transport Association (IATA) warned Wednesday.

Speaking at the IATA World Data Symposium in Singapore, the IATA chief acknowledged that crude prices had already shed roughly 15% following recent ceasefire announcements, a welcome development for an industry battered by months of conflict-driven cost surges. However, he cautioned that restoring adequate global supplies of jet fuel and other refined petroleum products was a far more complex and time-consuming undertaking.

The IATA chief underscored that the Middle East sits at the heart of the global energy supply chain, meaning that even early positive price signals would not translate into rapid relief at the operational level. The recovery timeline, he stressed, would stretch well beyond weeks.

He also drew attention to a structural challenge that has long plagued the aviation industry — the near-direct correlation between oil prices and passenger ticket prices — and the persistent lag between shifts in crude markets and their actual reflection in airline revenues. That delay, he noted, has always complicated the industry's ability to respond swiftly to changing cost conditions.

The remarks serve as a sobering counterweight to optimism surrounding the US-Iran ceasefire, signaling that airlines and travelers should brace for sustained pressure on fares and fuel availability even as geopolitical tensions begin to ease.

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