Aviation leaders gather in Rio amid jet fuel price concerns
13 reported2 unconfirmed
Aviation leaders are converging in Rio de Janeiro this weekend for the Iata AGM, the annual global airline summit, as the industry continues to face high jet fuel prices and supply chain uncertainties. The summit was announced at the last gathering in Delhi, where India’s prime minister, Narendra Modi, addressed attendees. Global air traffic had rebounded and jet fuel was just over $80 a barrel at that time, but it now remains over $140 a barrel despite a recent decline from last month’s peak. According to aviation analysts Cirium, jet fuel accounted for just over a quarter of global airlines’ costs in 2025, and every dollar increase per barrel adds nearly $3 billion to annual fuel bills. About 6% of available seats have been removed from airline schedules worldwide over the last month due to high costs and uncertain demand. European carriers have largely maintained full schedules, and the EU’s transport commissioner, Apostolos Tzitzikostas, stated there is currently no jet fuel shortage in Europe. The conflict between the US, Israel, and Iran has affected Gulf carriers, with operations grounded in the Middle East when war broke out in late February and hub airports hit by drones.
What’s reported
Aviation leaders are gathering in Rio de Janeiro for the Iata AGM this weekend.
The summit was announced at the last Iata meeting in Delhi, addressed by India’s prime minister, Narendra Modi.
Jet fuel was just over $80 a barrel at the time of the Delhi summit; it now remains over $140 a barrel.
Cirium reported jet fuel was just over a quarter of global airlines’ costs in 2025.
Every dollar increase per barrel adds nearly $3 billion to annual fuel bills.
About 6% of available seats were removed from airline schedules worldwide over the last month.
EU transport commissioner Apostolos Tzitzikostas said there is no jet fuel shortage in Europe currently.
The US-Israel-Iran war has affected Gulf carriers, with operations grounded in late February and hub airports hit by drones.
EasyJet’s chief executive, Kenton Jarvis, said the airline suspended hedging due to fuel price volatility.
EasyJet’s tumbling share price has attracted a takeover bid from US private equity firm Castlelake.
Iata director general Willie Walsh has announced his departure and will take over as boss of Indigo.
Indigo has axed its direct Delhi-Manchester route citing high fuel costs.
Flights to the summit were provided by Iata and Latam airline.
Open questions
Whether Iata will announce a successor to Willie Walsh in Rio or next year.
The full cost impact of the prolonged war on airlines and customer willingness to pay higher fares.
Key figures
Narendra Modi, prime minister of India
Apostolos Tzitzikostas, EU transport commissioner
Kenton Jarvis, chief executive of EasyJet
Willie Walsh, director general of Iata
Donald Trump, former US president (mentioned in context of fuel price volatility)
Sources: The Guardian
