Rio Hosts Airline Chiefs as Industry Flies High Despite Fuel Fears
The world’s top airline executives are landing in Rio de Janeiro this weekend for the International Air Transport Association’s annual meeting, and the irony isn’t lost on anyone. As one attendee put it: nothing says jet fuel crisis like flying everyone to Brazil. Yet despite oil tankers stuck near the Strait of Hormuz and the ongoing US-Israel-Iran conflict, carriers have largely shrugged off warnings of summer chaos for European travelers.
Fuel prices remain stubbornly above $140 a barrel, down from last month’s peak but still punishing. Cirium, an aviation analytics firm, notes that jet fuel accounted for more than a quarter of global airline costs in 2025. Every dollar increase on a barrel adds nearly $3 billion to the industry’s annual fuel bill. In response, carriers have trimmed about 6% of available seats worldwide over the past month.
Still, European airlines have kept their summer schedules full, thanks in part to new kerosene supplies from the US and West Africa. On Friday, EU Transport Commissioner Apostolos Tzitzikostas told Reuters there is no jet fuel shortage in Europe and none is expected. Many large carriers also hedge their fuel supply, insulating them from sudden price shocks. But volatility has forced some to pause. EasyJet’s CEO Kenton Jarvis admitted the airline stopped hedging because prices “bump up and down depending on what Trump has for breakfast.”
The summit arrives as the industry faces a wave of consolidation. EasyJet’s falling share price has drawn a takeover bid from US private equity firm Castlelake, possibly with another European carrier. Meanwhile, Gulf airlines—hit hard by the war’s closure of Middle Eastern airspace and drone attacks on hub airports—will be watching closely. Emirates, the host of last year’s Iata meeting in Dubai, is sending its delegation without its chief executive.
Environmental discussions are expected to take a back seat, though the push for sustainable aviation fuels continues. Iata Director General Willie Walsh, who once bullied members into backing SAF, now blames governments for mandating its use while production lags. Walsh is leaving his post to run IndiGo, India’s fast-growing budget carrier, which recently cut its Delhi-Manchester route due to fuel costs. A successor may be named in Rio—or not until next year. Either way, after months of turmoil, most airlines still believe they’ll be around to see it.