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Flight Prices from Argentina Could Surge Up to 30% Amid Jet Fuel Cost Crisis

14/06/2026 15:48 - Economia

Avión comercial de pasajeros ascendiendo en el cielo azul con nubes blancas, simbolizando los viajes internacionales y el impacto del combustible en los precios

Aviation Industry Faces Fuel Cost Crisis

The Argentine aviation sector is confronting a challenging landscape due to rising costs of aviation fuel, known as jet fuel, a critical input representing between 30% and 40% of airlines' operational costs. This increase is directly reflected in final ticket prices for both domestic and international flights.

Jet fuel is a derivative of crude oil, making its price directly linked to international oil market fluctuations. Brent crude, the global benchmark, trades at USD 88.27 per barrel, while WTI stands at USD 85.81 per barrel according to data from June 13, 2026.

Global Oil Market Context

The global oil market is experiencing particular tension due to the Middle East conflict. The Strait of Hormuz, through which approximately 20% of the world's petroleum flows, has been a focal point of disputes affecting the global supply chain.

On June 13, 2026, Donald Trump announced a peace agreement with Iran that includes the immediate reopening of the Strait of Hormuz. However, global strategic oil reserves remain at historically low levels after more than 100 days of conflict.

The International Energy Agency (IEA) released approximately 400 million barrels from strategic reserves, while Japan released 90 million barrels. Reserves at Cushing, Oklahoma stand at 21.6 million barrels, near the critical 20 million threshold.

What is Jet Fuel?

Jet fuel is a type of refined kerosene specially designed for use in aircraft with gas turbine engines. It is the most commonly used fuel in commercial aviation worldwide.

There are two main types:

  • Jet A-1: International standard, freezing point of -47°C.
  • Jet A: Primarily used in the United States, freezing point of -40°C.

Factors Affecting Ticket Prices

Airfare costs are composed of multiple factors:

  • Fuel: 30-40% of operational costs.
  • Fees and tariffs: Airport taxes, landing rights.
  • Operations: Crew, maintenance, leasing.
  • Commercialization: Marketing, reservation systems.

Argentina's Market Situation

Argentina imports practically all the aviation fuel it consumes, making it highly dependent on international crude oil price fluctuations. Airlines operating in the country must cover fuel costs in US dollars, plus corresponding import taxes and tariffs.

Context for international readers: Argentina has historically faced economic challenges including high inflation and currency controls. The Argentine peso's volatility means that dollar-denominated fuel costs create additional pressure on local airlines and consumers. The country's dependency on imported fuel makes it particularly vulnerable to global supply disruptions.

The uncertainty in the Middle East, combined with global strategic reserves at critical levels, creates expectations of possible further price increases in the short term if global oil production and distribution do not stabilize.

Source: International oil market context based on data from June 13, 2026. Peace agreement with Iran announced by Donald Trump.

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