Jet fuel shortage is a myth from airlines who want to cancel flights, says Elevate Jet CEO
Fortune • • business
Key Points:
- Demand for private aviation has increased slightly despite rising fuel prices and the ongoing war, with global aviation metrics such as total hours flown and volume of arrivals and departures up this year.
- Nearly half (48.8%) of S&P 500 companies now allow CEOs private use of corporate jets, a significant rise from 6% in 2021, reflecting growing corporate reliance on private aviation.
- Jet fuel prices on the open market exceed $4 per gallon, but private jet owners face exorbitant costs up to $10.42 per gallon at some private airports due to added taxes, fees, and service charges.
- Commercial airlines are canceling thousands of flights, particularly to destinations like Dubai and Riyadh, to avoid unprofitable routes amid doubled jet fuel prices, using "force majeure" clauses to maintain airport slots without operating these flights.
- A potential fuel supply crunch looms in the fall if the U.S. remains at war with Iran, as jet fuel competes with home heating oil production, possibly forcing a choice between heating homes and fueling planes.