Jet Fuel Demand Plummets as China Culls 23,600 Flights

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • November jet fuel demand 131,000b/d lower in China alone
  • Some 23,600 flights cut over the next 11 weeks in China

China has cancelled almost 24,000 flights over the coming 11 weeks since this time last week, as its ‘Zero Covid-19’ policy once again hits the jet fuel market. In the absence of these flights, jet fuel demand in November will be 131,000 barrels per day, or 15.8%, lower than the schedule implied previously as a result.

China consumes almost one in every five barrels of jet fuel used in passenger flights globally. As demand in the world’s second largest aviation market continues to be hit by Covid-19 restrictions, the global jet fuel market will suffer as other markets like gasoline and diesel recover.

International flights from China remain all but grounded as the region’s strict travel rules choke any potential recovery in travel demand. Shenzhen Airlines, China Southern Airlines, Air China and China Eastern Airlines are most affected by the cuts. However, jet fuel producers and suppliers to Asia Pacific will particularly feel the pressure as the largest consumer in the region purchases lower volumes.

BNEF Shorts are research excerpts available only on the BNEF mobile app and the Bloomberg Terminal, highlighting key findings from our reports. If you would like to learn more about our services, please contact us.

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
Sign up for our free monthly newsletter →

Want to learn how we help our clients put it all together? Contact us