Example of kerosene cost calculations
The price of jet fuel in January 2022 is as follows:
- $2.46 (US dollars) per gallon
- 1 liter = 0.65 pence (pound sterling)
- 1 liter = 0.78 euros
It should be noted that it does not include fuel delivery or aircraft refueling costs. Therefore, the price airlines actually pay for fuel per kilogram will be higher than the figures given above, subject to contract details. Currently there is no aviation fuel tax in the UK or Europe.
A Jumbo Jet (Boeing 747-400) flying from London to New York burns around 70,000 kilograms of fuel. As jet fuel has an approximate specific gravity of 0.85 (the measure of its density), this therefore equals 82,300 litres.
Based on these figures, the cost of fuel to fly from London to New York using a B747 Jumbo Jet is approximately £53,500 (€64,300), which, based on 450 passengers, would cost £118 (€141/$158) per person.
Fuel Price Coverage
The prices that airlines actually pay for their fuel vary greatly depending on the price at which they have “covered” the fuel. Hedging involves agreeing a constant price for fuel for a set period of time in the future. This helps an airline reduce risk and fixed costs which can be important for financial planning. For example, a fixed amount of fuel, say 5 million tons, could be covered at $600 per metric ton for 12 months. The airline will pay $600 per metric ton regardless of fuel price fluctuation during this period. If the price of fuel increases, the airline is protected from this increase while if there is a drop in the price of fuel, the airline will pay more for the fuel than it should have.
Coverage is normally based on the purchase of a specified amount of fuel. If the airline stops flying, for example due to the COVID-19 crisis, and does not use the fuel it has covered, airlines still have to pay for the fuel they have covered even if they don’t. do not use, which may result in financial loss.
How much does it cost to refuel an A380?
The A380 can hold approximately 315,000 liters of fuel. So it would cost around £205,000 to refuel an A380.