US industry groans under fuel prices

The National Air Carrier Association (NACA), an advocacy group for U.S. air carriers founded in 1962, including ABX Air, Air Transport International, and Atlas Air, has recently commented on the situation in the jet fuel market. President and CEO George Novak emphasizes that rising tensions in the Persian Gulf have led to an increase in jet fuel prices. This development raises concerns about the availability of kerosene in parts of the global supply chain. The increased fuel costs affect all sectors of the aviation industry, including passenger and cargo airlines, charter operators, and regional airlines.

NACA points out that the rising fuel prices not only burden the airlines but also have implications for the entire economy. The costs of everything transported by air freight—from medical supplies to electronic components to perishable goods and consumer products—are rising. This leads to higher prices for U.S. businesses and consumers.

In light of this situation, NACA urges the government to consider a temporary suspension of federal excise taxes on commercial jet fuel until market conditions stabilize and prices decrease. This measure could provide immediate operational relief to airlines, preserve critical transport capacity, and contribute to the stability of supply chains. Additionally, it could help mitigate the additional inflationary pressure on the American economy during a time of significant geopolitical uncertainties.

www.naca.aero