Global airlines are facing uneven financial pressures as volatile jet fuel prices combine with weakening local currencies, the International Air Transport Association (IATA) has reported.

According to IATA, fluctuations in jet fuel prices, particularly in U.S. dollars, are hitting carriers differently depending on their local currency strength. While some countries benefit from a stronger currency relative to the dollar, others are seeing fuel costs surge.

The situation has intensified over the past four years, driven by pandemic-related demand shocks, ongoing supply chain challenges, and geopolitical tensions. Countries such as Russia and Brazil are among the hardest hit, with their currencies losing significant value against the dollar. Russia’s ruble has been weakened by international sanctions following the Ukraine invasion, while Brazil’s real continues to struggle amid expectations of looser monetary policy and persistent fiscal and trade challenges.

Even major economies like the European Union, China, and India have experienced currency depreciation against the U.S. dollar since mid-2022, though the impact is comparatively milder. In contrast, nations with stronger currencies have seen fuel expenses decline in local terms as the dollar loses value.

Jet fuel remains one of the largest operating costs for airlines, accounting for nearly 26% of total expenses, rivaling labor costs. Around 55–60% of global airline costs are in U.S. dollars, compared to 50–55% of revenue, making carriers particularly vulnerable to currency swings. IATA noted that even a 1% change in the U.S. dollar’s value against other currencies can shift airline operating margins by approximately 0.1 percentage points.