Airlines back in the skies: will the demand of jet fuel recover fast?

 

airlines after pandemic

The airline industry, which was dealt a severe blow by the pandemic, shows the signs of recovery in America and Asia, judging by the number of planes in the skies over major airports in the two continents.

If the latest trend continues in the face of accelerated vaccine drives, the analysts estimate that 2/3 of the flights of pre-pandemic time will be back in the air soon.

In proportion to the growth, there will be a corresponding increase in demand for jet fuel, gasoline and diesel as the sectors revolve around the airline industry grow as well.

In China too, passenger number on airplanes are rising and the skies are busier with activities close to the pre-pandemic level. That means, jet fuel demand in Asia continues to rise.

In Europe, however, the picture is still gloomy:  Germany, France, Italy, Poland and Ukraine are on the verge of going back to lockdowns. To make matters worse, the politicians are wrangling over the vaccines, their origin and the side effects, even when the risk posed by the latter is statistically insignificant.

If Europe gets this wrong again, Europeans will lose the second successive summer in two years; its impact will severely affect European airlines – other airlines too – and the entire tourism sector.

In a separate development, however, the EIA, US Energy Information Administration, was not impressed with the rising number of planes in the air; it says the demand of jet fuel will not recover for a considerable time; nor will the passenger numbers.

Whether the EIA will revise its forecast in the coming months, is something that the industry analysts watch with increased focus, as it is going to have significant consequences.

 

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