ARC NEWS
​Jet-fuel prices tumble
April 17, 2025
The price that airlines are paying for jet kerosene has fallen sharply over the past several weeks as crude prices have weakened, according to energy intelligence provider ICIS. On 15 April, ICIS assessed the price of jet fuel for delivery to northwest Europe at $658 per tonne. Though this represents a $1 increase over the past week, it is down from $697.50 four weeks ago. At its highest point over the past two years, in September 2023, the figure was close to $1,100. "European jet-fuel spot prices continued downwards trajectory this week, reflecting upstream weakness despite low flat prices supporting trading activity," writes ICIS, which like Cirium is RELX-owned. "Market participants indicated pick-up in buying interest and increased hedging activity," it adds. At $64.61 per barrel, benchmark Brent crude prices are at their weakest in a year, having fallen from nearly $90 at the same point in 2024, ICIS notes. Showing similar price movements, jet fuel at New York Harbor is assessed at 202.50 US cents per gallon, down from 214 four weeks ago. Prices in Singapore were assessed at $79.69 per barrel, down from $84.70. In all three regions, prices were slightly higher on the week. "Jet-kerosene outright prices in the Asia-Pacific region were assessed higher than the previous reporting week, supported by stronger crude and an improvement in refining margins and physical premiums for jet kerosene," says ICIS, noting that prices have been buoyed by exemptions announced by the USA. It adds that a softer dollar has reduced costs for non-US crude and oil products buyers.


China Southern suspends bids on 787-8s
April 16, 2025
China Southern Airlines has suspended its solicitation of bids on 10 Boeing 787-8s and two spare GE Aerospace GEnx-1B70/P2 engines via the Shanghai United Equity Exchange. The carrier decided to suspend the bids "in view of the existence of matters affecting property rights transactions", says the SUAEE. It specifies that the solicitation of bids has been suspended until 12 May. The suspension comes amid a tit-for-tat trade war between the USA and China which may affect Boeing aircraft deliveries into China. Bloomberg News reported on 15 April that China has ordered its carriers not to take delivery of Boeing jets, citing people familiar with the matter.


United first-quarter profit widens significantly
April 16, 2025
United Airlines has reported an operating profit of $607 million for the first quarter of 2025, a giant step up from the $99 million profit the US major made during the same period in 2024. Operating revenue increased 5% to $13.2 billion. Expenses, at $12.6 billion, were up 1% year on year. United notes that its operation's start of the year has been "stronger than any previous year since 2021". "We will continue to execute our multiyear plan that has allowed United to thrive in any demand environment," United chief executive Scott Kirby states. "It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times." The Chicago-based carrier raised first-quarter capacity by 5% versus the first quarter of 2024. Load factor slid one percentage point, to 79%. United ended the first quarter with $18.3 billion in liquidity, and total debt, finance lease obligations and other financial liabilities of $27.7 billion.


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