Airline Fuel Prices Spike as Aviation Sector Recovers

As more flyers start to travel, airlines are paying more for fuel. New data from the U.S. Department of Transportation Bureau of Transportation Statistics shows not only are air carriers using double the amount of fuel than in 2020, but they are paying more as well – a cost which could soon be passed down to flyers.

With the aviation sector recovery, airlines are burning more fuel than before – and are paying more for it as well. The U.S. Department of Transportation Bureau of Transportation Statistics (BTS) released the U.S.-based airlines’ May Fuel Cost and Consumption numbers, showing both fuel usage and price increasing significantly.

Airlines Burn 1.1 Billion Gallons in May at Average Cost of $1.98 Per Gallon

In May 2021 alone, the fuel used from regularly scheduled service exceeded one billion gallons for the second consecutive month. The fuel burn is over twice the amount U.S.-based carriers used in May 2020, when the COVID-19 pandemic grounded flights across the country.

Chart courtesy; U.S. Department of Transportation Bureau of Transportation Statistics

However, airlines are also paying more for that fuel. In May 2021, the average price of one gallon of fuel spiked to a post-pandemic high of $1.98. This reflects an increase of $0.23 per gallon over April 2021, and an increase of $0.13 from March 2021. Compared to May 2020, fuel prices have nearly doubled.

Chart courtesy: U.S. Department of Transportation Bureau of Transportation Statistics

Collectively, airlines spent over $2.3 billion on aviation fuel, an increase of $500 million from April 2021. The figure is also the highest level since February 2020, when U.S.-based carriers spent $2.4 billion on fuel.

Fuel Prices Could Soon Reflect on Airline Tickets

With aviation fuel usage and prices increasing, flyers could soon be paying more when they book airfare. In Hopper’s May 2021 Consumer Airfare Index Report, the price tracking website predicted the average domestic airfare could climb to $281 per round-trip by the end of the year – an increase of 28 percent from 2020.