BAKU, Azerbaijan, Dec.13
By Leman Zeynalova – Trend:
Jet fuel consumption will return to pre-pandemic levels in the next 3 years, Trend reports with reference to Fitch Solutions.
“Emerging markets (EM) take over from developed markets (DM) to drive global fuel consumption growth. Emerging markets in Asia will return to help power growth as the pandemic recovery builds demand. The rapid recovery in DMs fuel demand in 2021 marked the first year since 2015 when DM growth outpaced EM growth. The recovery from COVID-19 remains incomplete as many regions have yet to return to pre-pandemic levels of fuel consumption. A mix of zero-tolerance infection policy along with local lockdown measures to combat a slow vaccination rollout means many EMs will only start to fully regain economic activity in 2022,” said the company.
The report released by Fitch Solutions says that another key factor impacting global fuel consumption is the stunted return of air travel.
“Ongoing travel restrictions and uneven vaccination rates have dampened traveller sentiment. We forecast the full return to pre-pandemic levels of jet
fuel consumption to occur in 2024, as the threat of emerging variants and low vaccine uptake in some markets dampens sentiment for international travel and tourism,” the company said.
Fitch Solutions expects the latest variant of Omicron to mirror the impacts of the Delta variant, setting back fuel consumption on increased lockdowns and travel restrictions before giving way to greater confidence as vaccines prove effective against serious illness and death.
“Should vaccination rates in EMs remain stunted, the risk of lower fuel demand growth would rise as this would impede a return to pre-pandemic economic activity,” the report reads.
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