Global Jet Fuel Demand Stalls Amid Travel and Policy Hurdles

Global jet fuel demand is facing a slowdown as challenges in the travel industry mount. Lower international travel from China, alongside stringent U.S. immigration policies, are significant contributors to this trend. Improvements in aircraft fuel efficiency further reduce the need for jet fuel, impacting global oil demand and prices.

The International Energy Agency projects that jet fuel consumption will rise to 8 million barrels per day by 2027, slightly higher than pre-pandemic levels of 7.9 million in 2019. However, demand growth is expected to cool, with just a 1.32% rise anticipated in 2025 and a similar forecast for next year.

Analysts express caution as air travel demand faces macroeconomic uncertainties. U.S.-bound travel may weaken due to stricter immigration policies and economic factors. Notably, experts highlight reliance on Chinese demand for future global growth, amid domestic consumer hesitancy post-pandemic.

(With inputs from agencies.)