Singapore: After a year of negative growth, India's appetite for jet fuel is set to rebound in 2020 amid expectations that economic recovery will lift air travel, while the industry bounces back from flight disruptions following the closure of a leading private airline.
Register Now The grounding of Jet Airways -- once the country's largest commercial airline with a market share of close to 23% -- took a toll on jet fuel demand for the major part of last year as its fleet of more than 100 aircrafts ceased operations following the start of insolvency proceedings.
"We expect India's jet fuel demand to rebound in 2020 as economic growth is expected to recover," said Lim Jit Yang, adviser for Asian oil markets at S&P Global Platts Analytics.
India's jet fuel demand posted an average annual growth of 10.5% between 2016 and 2018, as rising incomes due to robust economic growth and falling airfares on the back of competition between low-cost air carriers boosted air travel.
But in 2019, jet fuel demand contracted by 0.5% year on year to 178,000 b/d, according to data from Petroleum Planning and Analysis Cell as well as Platts Analytics. This came on the back of an economic slowdown and the ground of Jet Airways, which struggled due to competition with budget carriers that prompted it to cut fares, resulting in steep financial losses.
22/01/20 S&P Global Platts
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Register Now The grounding of Jet Airways -- once the country's largest commercial airline with a market share of close to 23% -- took a toll on jet fuel demand for the major part of last year as its fleet of more than 100 aircrafts ceased operations following the start of insolvency proceedings.
"We expect India's jet fuel demand to rebound in 2020 as economic growth is expected to recover," said Lim Jit Yang, adviser for Asian oil markets at S&P Global Platts Analytics.
India's jet fuel demand posted an average annual growth of 10.5% between 2016 and 2018, as rising incomes due to robust economic growth and falling airfares on the back of competition between low-cost air carriers boosted air travel.
But in 2019, jet fuel demand contracted by 0.5% year on year to 178,000 b/d, according to data from Petroleum Planning and Analysis Cell as well as Platts Analytics. This came on the back of an economic slowdown and the ground of Jet Airways, which struggled due to competition with budget carriers that prompted it to cut fares, resulting in steep financial losses.
22/01/20 S&P Global Platts
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