Some airlines benefit from a weaker US dollar: IATA
Jet fuel is airlines' largest cost component (closely matched by labor costs), and it is usually traded in US dollars. The price of jet fuel has also fallen in 2025, by approximately 6% over the first six months, allowing for a combined savings of roughly 12% on the fuel bill for non-USD-based carriers, equating to a reduction in total costs of around 3%, the report said.
Other dollar-linked costs, such as maintenance and repairs, payments for aircraft, and interest on dollar-priced loans, also became cheaper for non-dollar-based carriers.
In 2024, maintenance represented around 8% of operating costs, while aircraft ownership, including leasing and depreciation, accounted for about 11%.
The overall impact on operating expenses of the lower fuel price and the weaker USD as it pertains to these dollar-denominated cost components is approximately 4.5% during the first half of 2025, on average, for non-dollar-based carriers.
The Chinese yuan and the Indian rupee remained virtually unchanged against the dollar, excluding them from the benefits of the general dollar decline.
The Turkish lira and the Argentine peso are at the losing end of the spectrum, having depreciated by 11% and 14% against the dollar, respectively.
All the bills' carriers in those countries that pay in US dollars will increase accordingly, in local currency terms.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
5 hours ago
- Times of Oman
GCC total GDP at constant prices exceeds $456 billion
Muscat: The gross domestic product (GDP) at constant prices for the Gulf Cooperation Council (GCC) countries rose by 3.3% by the end of the fourth quarter of 2024, reaching $456.3 billion, compared to $442.3 billion during the same period in 2023. The latest statistics released by the GCC Statistical Centre showed that non-oil activities contributed 70.6% to the GCC's GDP at constant prices by the end of the fourth quarter of 2024, while oil activities accounted for 29.4%. The GCC GDP at constant prices recorded a 1% growth in the fourth quarter of 2024, having registered $452.2 billion in the third quarter.
Observer
19 hours ago
- Observer
Middle East airlines see demand drop as global passenger growth slows down in June
Disruption in the Middle East air travel in June saw total passenger demand growing modestly by 2.6 compared to June 2024, according to the International Air Transport Association (IATA) released data. Middle Eastern carriers saw a 0.4 percent year-on-year decrease in demand. Capacity increased 1.1% year-on-year, and the load factor was 78.7 percent (-1.2 ppt compared to June 2024). Military conflict particularly impacted traffic on routes to North America (-7 percent year-on-year) and Europe (-4.4 percent year-on-year). Total demand, measured in revenue passenger kilometers (RPK), was up 2.6 percent compared to June 2024. Total capacity, measured in available seat kilometers (ASK), was also up 3.4 percent year-on-year. The June load factor was 84.5 percent (-0.6 ppt compared to June 2024). International demand rose 3.2 percent compared to June 2024. Capacity was up 4.2 percent year-on-year, and the load factor was 84.4 percent (-0.8 ppt compared to June 2024). International demand rose 3.2 percent compared to June 2024. Capacity was up 4.2 percent year-on-year, and the load factor was 84.4 percent (-0.8 ppt compared to June 2024). Domestic demand increased 1.6 percent compared to June 2024. Capacity was up 2.1 percent year-on-year. The load factor was 84.7 percent (-0.4 ppt compared to June 2024). 'In June, demand for air travel grew by 2.6 percent. That's a slower pace than we have seen in previous months and reflects disruptions around military conflict in the Middle East. With demand growth lagging the 3.4 percent capacity expansion, load factors dipped 0.6 percentage points from their all-time record-high levels. At 84.5 percent globally, however, load factors are still very strong. And with a modest 1.8 percent capacity growth visible in August schedules, load factors over the Northern summer are unlikely to stray far from their recent historic highs,' said Willie Walsh, IATA's Director General. International RPK growth reached 3.2 percent in June year-on-year, but load factor fell across all regions as capacity growth outstripped demand. The steepest fall in RPK growth from May was in the Middle East, where international traffic contracted 0.4 percent year-on-year, impacted by military conflict.
Muscat Daily
a day ago
- Muscat Daily
Oman, China explore deeper ties at Salalah forum
Salalah – The third Omani-Chinese Friendship Forum was held in Salalah last week focusing on strengthening strategic partnership and expanding avenues of cooperation and investment between Oman and China. Organised under the theme 'Chinese Modernisation and Oman Vision 2040: Our Work and Proposals', the forum was a joint initiative of Al Roya newspaper, the Chinese Embassy in Oman and the Oman-China Friendship Association. It brought together officials, experts and specialists from both countries. H H Sayyid Marwan bin Turki al Said, Governor of Dhofar, inaugurated the forum and felicitated participants and speakers. H E Dr Saleh Said Masan, Undersecretary for Commerce and Industry at Ministry of Commerce, Industry and Investment Promotion, described the forum as a 'unique opportunity to exchange expertise and explore promising investment areas that serve the development priorities of both countries.' H E Lyu Jian, Ambassador of China to Oman, said relations between the two countries have remained strong for over 1,200 years, with diplomatic ties formally established in 1978. 'Our cooperation has been stable and fruitful, built on mutual respect and equality.' He added that China is Oman's top trading partner, with bilateral trade reaching US$36.7bn in 2024. China is also among the top five foreign investors in Oman. 'Our collaboration includes the launch of the first Omani satellite, joint energy investments and training programmes that have benefited over 1,200 Omanis.' The ambassador noted that trade between China and the GCC reached US$288bn in 2024, with Chinese investments increasing by more than 30% in the first half of 2025. He called for more cultural cooperation and the introduction of direct flights between Oman and China. Dr Khalid Salim al Saidi, Chairman of Oman-China Friendship Association, said it plays a 'vital role in strengthening ties beyond formal meetings'. He added that its work now includes building cultural bridges and informal cooperation initiatives based on mutual values. Naif Hamed Fadhil, Head of the Dhofar branch of Oman Chamber of Commerce and Industry, said the forum is 'important for bringing business owners closer and enabling bilateral investment in energy, technology, industry, logistics and tourism'. He called for the development of sustainable and impactful cooperation models. The forum featured discussions on four core themes: Chinese Modernisation and Oman Vision 2040, Energy Sector Cooperation, Innovation and Technology Partnerships, and Cultural and Humanitarian Exchange. It also included a photo exhibition in collaboration with the Chinese Embassy and B2B meetings between companies from the two countries. More than 30 representatives from Omani and Chinese firms took part, with a dedicated exhibition showcasing Chinese businesses. The forum aimed to reinforce strategic ties and explore new collaboration areas aligned with Oman's development priorities, while drawing from China's experience in economic and social modernisation.
