IATA cannot influence the commodity price of oil. However, it can and does take measures to reduce the amount of fuel consumed, simplify business practices, reduce duties, fees and taxes, and improve the reliability of jet fuel supply. Some fast facts are provided below.
IATA's role
Drive down the cost of the provision of jet fuel through reduced fees and margins by:
- Eliminating or minimising illegal, unjust or anti-competitive duties, fees and taxes
- Eliminating fuel market access fees at EC airports
- Addressing reliability of fuel supply issues at airports worldwide
- Helping airlines better manage fuel purchasing and conservation
- Assisting airlines, airports and fuel suppliers to better manage fuel shortfall incidents and crises
- Collaborating with fuel suppliers and fuel system providers to obtain best value for Member airlines
- Seeking economic regulation at locations where there is no competition
- Encouraging competition at airports for fuel supply and into place services
- Developing worldwide industry standards to facilitate financially viable electronic data exchange
Fast facts
- Fuel efficiency improves by 1.7% each year, which saves almost US$2 billion from the annual fuel bill.
- The actual impact on the industry's fuel bill of a US$1 a barrel rise in fuel price is US$0.8 billion.
- The fuel bill rose from US$61 billion in 2004 to US$90 billion in 2005, equivalent to 22% of airline operating costs. The fuel bill rose to US$111 billion in 2006, 26% of operating expenses.
- The fuel bill rose to US$136 billion in 2007, 29% of operating expenses.