Airlines grow bullish on passenger numbers

LONDON, (Quantum Commodity Intelligence) - Major carriers Qantas and American Airlines have both issued bullish trading updates this week indicating that a return to international travel – and demand for jet fuel – may be on the cards.

American Airlines – the world's biggest carrier by passenger numbers – said in a trading update on Wednesday that it expects to fly more than 90% of its domestic seat capacity compared to the summer of 2019 over the next few months.

And for international travel, it suggested it would fill 80% of its international seat capacity compared to 2019.

In addition, Qantas, the Australian national carrier, said it also expects domestic capacity to reach 90% of its pre-pandemic levels over the coming months.

The data chimes with recent forecasts that predict greater than previously projected oil demand, notably Chinese crude import data, the IEA forecasting a more positive outlook for 2020 and data from the U.S. EIA showing a sharp drawdown in crude oil inventories last week.