It is believed by industry analysts that demand for jet fuel could take years to recover from the coronavirus crisis as airlines struggle to survive the currant downturn.
“Jet fuel consumption will be impacted for a longer time and maybe not recover fully even next year, as travellers remain concerned about long-haul vacations, and businesses get used to online meetings,” said Per Magnus Nysveen, head of analysis at Rystad Energy, a consultancy.
The International Air Transport Association, representing airlines, has already warned of a slower recovery than in past crises. On Tuesday, it raised its forecast for 2020 revenue losses by 25% to $314 billion.
“Technology improvement is a key reason why we don’t think business travel will resume sharply any time soon,” Homayoun Falakshahi, senior analyst at Kepler
Under lockdowns people are adapting to a more local existence and consuming less globally produced fresh food, which may have a lasting impact on fuel demand, analysts at Goldman Sachs said.