Jet fuel prices hit cheapest level in 3 months

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June 4, 2026 | 12:00am

MANILA, Philippines — Jet fuel prices have come down to their lowest level since reaching new highs in April, indicating a gradual return to normalcy ahead of the weakest season for air travel.

Based on the monitoring of the International Air Transport Association (IATA), jet fuel prices have gone down to $141.64 per barrel as of May 29, the lowest in close to three months.

This is the lowest average for jet fuel prices since breaking the $100-per-barrel levels in March following the US-Israel attacks on Iran that triggered an unprecedented spike in petroleum costs.

For a time, jet fuel prices spiked to $209 per barrel in early April, compelling airlines around the globe to reduce scheduled flights. Likewise, they canceled multiple trips to the Middle East as a safety precaution in the heat of Iran’s retaliatory strikes on US allies.

In the Philippines, the gradual reduction in jet fuel prices means airlines can save cash ahead of the lean season. Historically, domestic air travel weakens between July and September, as this is the period when students go back to school, trimming demand for family travels.

On top of this, the stretch is marked by the arrival of typhoons, some of which are strong enough to trigger flight cancellations and delays.

For passengers, they can expect airfares to become cheaper if jet fuel prices continue to go down, as the Civil Aeronautics Board (CAB) would have to adjust the pass-on fee imposed by airlines.

CAB lowered the fuel surcharge to Level 13 for the period of June 1 to 15, from Level 15 prior, to reflect the four consecutive weeks of decline in world prices.

At Level 13, airlines can collect a fuel surcharge of P423 to P1,237 for local trips and P1,396.74 to P10,385.42 for international flights. This is cheaper than the previous range of P491 to P1,436 and P1,621.42 to P12,056 for domestic and foreign flights, respectively.

Still, at this level of jet fuel prices, airlines are far from booking a profit or simply breaking even. Cirium head of valuations George Dimitroff said the aviation industry stops making profit when jet fuel prices go beyond $76 per barrel.

“Cirium analysis and modelling shows the global airline industry stops making profit somewhere between $72 and $76 per barrel, depending on assumptions,” Dimitroff said.