Asian jet fuel refining margins have turned negative for the first time in over a decade as airlines continue to ground flights on international and domestic routes amid stringent travel restrictions to contain the coronavirus pandemic.
The already-battered profit margins are expected to come under further pressure as there is no concrete recovery timeframe in sight, trade sources said.
“Global air traffic is down by about 40-45% at present, according to flight tracking sources, with further deterioration expected over the coming weeks as more flight restrictions and airline capacity reductions take effect,” said Richard Gorry, managing director at JBC Energy Asia.
