Aviation Fuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Aviation Fuel Market is projected to expand from USD 302.43 Billion in 2025 to USD 455.30 Billion by 2031, registering a CAGR of 7.06%. This market consists of specialized petroleum-based and synthetic fuels, chiefly Jet A, Jet A-1, and Avgas, which are essential for aircraft propulsion. The industry's foundation rests on the strong recovery of global air passenger traffic and the growth of commercial fleets to satisfy increasing travel needs. As international trade and tourism activities revive, airlines are notably boosting flight frequencies, directly propelling consumption levels. Data from the International Air Transport Association indicates that in 2024, the global airline industry was expected to utilize 99 billion gallons of fuel, representing a total expenditure of $291 billion.

Nevertheless, the inherent instability of crude oil prices poses a major obstacle to market growth, often destabilizing airline operating budgets. Sudden price surges driven by geopolitical instability complicate financial planning for carriers and can diminish profit margins. Additionally, while there is mounting regulatory pressure to shift toward Sustainable Aviation Fuel (SAF), the existing high production costs and insufficient supply infrastructure for these alternatives establish significant economic hurdles, impeding the industry's capacity to smoothly adjust to changing environmental standards.

Market Drivers

The revival of global air passenger traffic and tourism serves as the primary engine for the aviation fuel market, fundamentally stimulating consumption across both international and domestic networks. With travel restrictions removed and consumer confidence restored, airlines are vigorously increasing flight schedules and bringing grounded fleets back into service to meet the surge in mobility.

This recovery extends beyond leisure travel to include corporate and international transit routes, necessitating greater fuel volumes to support increased block hours. According to the 'Air Passenger Market Analysis' by the International Air Transport Association (IATA) in October 2025, global passenger demand rose by 4.6% year-on-year in August 2025. Furthermore, the wider logistics sector amplifies this momentum, as increased trade activity boosts fuel use; IATA reported that global air cargo demand grew by 4.1% in October 2025 compared to the prior year, further highlighting the market's dependence on continuous flight operations.

Concurrently, the expedited adoption of Sustainable Aviation Fuel (SAF) and environmental initiatives is transforming market dynamics by channeling investment into alternative propulsion technologies and supply chains. Motivated by strict decarbonization mandates and voluntary net-zero pledges from major carriers, the sector is undergoing a structural transition from traditional kerosene-based fuels to renewable alternatives produced from biomass and waste sources.

This shift is fueling the rapid development of production infrastructure and logistics specifically for low-carbon fuels, establishing a parallel growth path within the energy market. As confirmation of this trend, the International Air Transport Association's 'Global Outlook for Air Transport' from June 2025 projected that SAF production would reach 2.1 million tonnes in 2025. Although this currently represents a small portion of total consumption, this driver is essential for the market's enduring viability and adherence to evolving environmental regulations.

Market Challenges

The intrinsic volatility of crude oil prices serves as a major constraint on the Global Aviation Fuel Market. Because jet fuel is directly produced from crude oil, shifts in global oil markets lead to immediate pricing instability for air carriers. This unpredictability creates difficulties for financial planning, as airlines function with narrow margins and find it hard to absorb abrupt cost escalations. When geopolitical tensions or supply chain interruptions cause fuel prices to spike, carriers frequently cut flight frequencies or postpone fleet expansions to conserve capital, which consequently reduces the overall volume of fuel required by the sector.

This financial pressure directly inhibits market growth by depleting resources that could otherwise be allocated to network or capacity development. Elevated fuel costs compel airlines to prioritize operational survival rather than service expansion. According to the International Air Transport Association, jet fuel costs comprised roughly 31 percent of total airline operating expenses in June 2024. Such extensive reliance implies that even slight price increases can significantly diminish profitability, thereby restricting the industry's capacity to maintain consistent growth in consumption.

Market Trends

The increase in long-term Sustainable Aviation Fuel (SAF) off-take agreements is creating a solid financial basis for the renewable energy transition within the aviation industry. Carriers are increasingly securing multi-year supply contracts to alleviate risks related to future scarcity and price volatility of green fuels. These agreements are crucial for developers as they provide the guaranteed revenue streams needed to attract investment for constructing new bio-refineries, bridging the divide between ambitious climate targets and actual fuel availability. The intensity of this contracting activity is evident in the 'Growing airline engagement in SAF agreements' report by the International Air Transport Association from August 2025, which notes that 81 airlines globally have publicly announced 170 offtake deals since the market began, indicating a structural change in procurement strategies.

At the same time, the growth of Alcohol-to-Jet (AtJ) production pathways is resolving critical feedstock bottlenecks that limit broader market scalability. In contrast to early-generation methods dependent on finite supplies of used cooking oil, AtJ technology permits the conversion of plentiful agricultural waste and ethanol into high-performance jet fuel, facilitating extensive industrial adoption. This diversification is prompting substantial infrastructure investments designed to utilize regionally available biomass for decentralized production. Underscoring this technological progress, Honeywell announced in a corporate press release in February 2025 that Taiyo Oil Co., Ltd. had selected its ethanol-to-jet technology for a new facility in Japan, aiming for a production target of 200 million liters per year.

Key Players Profiled in the Aviation Fuel Market

• Exxon Mobil Corporation
• Chevron Corporation
• Shell PLC
• TotalEnergies SE
• BP p.l.c.
• Vitol Netherlands CoOperatief U.A.
• Valero Marketing and Supply Company
• Rosneft Deutschland GmbH
• China Aviation Oil Corporation Ltd.
• Viva Energy Australia Pty Ltd.

Report Scope

In this report, the Global Aviation Fuel Market has been segmented into the following categories:

Aviation Fuel Market, by Fuel Type:

• Jet Fuel
• Avgas

Aviation Fuel Market, by Application:

• Commercial
• Military
• Others

Aviation Fuel Market, by Type:

• Aviation Turbine Fuel
• Aviation Biofuel

Aviation Fuel Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Aviation Fuel Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.