Asia-Pacific airlines’ 2025 profit rises to $12.1 billion, but jet fuel spikes above $200 a barrel in April 2026
AAPA data show Asia-Pacific airlines' 2025 profit surge is being threatened by a sharp rebound in jet fuel costs amid Middle East tensions, with jet fuel up ~43% YoY and briefly above $200/bbl in April. The cost shock is already pressuring carrier earnings (PAL profit down; Cebu Pacific swung to a loss), increasing sensitivity of airline equities to energy volatility while reinforcing near-term support for crude-linked markets.
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Data from the Association of Asia Pacific Airlines (AAPA) show Asia-Pacific carriers posted net profit of $12.1 billion in 2025, but intensified geopolitical conflict in 2026 has driven jet fuel prices sharply higher. Jet fuel briefly climbed above $200 per barrel in April and was still at $127.06 per barrel on July 10, up 43% from last year’s average. Philippine Airlines (PAL) saw first-quarter net income decline, while Cebu Pacific swung to a loss, reflecting mounting cost pressure. Higher fuel costs are lifting airlines’ operating expenses, weighing on airline stocks and supporting crude prices.