Financial Times FT.com

Jet fuel costs rise faster than crude

By Javier Blas

Published: May 23 2008 03:00 | Last updated: May 23 2008 03:00

Jet fuel prices are rising much faster than crude oil prices, threatening the profitability of the airline industry, as demand for middle distillates, a category that includes jet fuel but also diesel and heating oil, surges, writes Javier Blas in London .

Since January, crude oil prices have surged by 42.7 per cent while jet fuel prices have moved 58.8 per cent higher. Analysts said that China is demanding large amounts of middle distillates with imports of aviation kerosene surging 42 per cent in April.

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