U.S. jet fuel consumption is on course to rebound more quickly from the coronavirus pandemic than many other key aviation markets, according to the EIA. The federal agency, after analyzing flight data provided by industry analytics firm Cirium, estimated that demand for jet fuel by commercial passenger flights in the United States as of Aug 16 was around 612,000 barrels per day — 43% of what had been used a year ago.
The report revealed that from mid-April through May, the consumption languished at approximately 20% of the 2019 usage. One should keep in mind that commercial passenger aircraft is responsible for more than 70% of America’s total jet fuel consumption.
As far as other regions of the world are concerned, jet fuel demand in Europe in mid-August was 36% of the same period in 2019, while for Middle East and North Africa, the rest of Africa, Asia (excluding China) and the rest of Americas the recovery rate was 30%, 31%, 28% and 24%, respectively. China saw its demand rebound to 60% of last year’s but this higher recovery could be attributed to the early onset of COVID-19 in the country and its strict government controls.
On the other hand, the relative strength of jet fuel consumption in the United States reflects its not-so-strict domestic travel restrictions, short-haul flying involved and non-discretionary travel constituting a large chunk of such journey, per the EIA. As it is, domestic are travel in most countries have felt lesser impact from the restrictions to slow the spread of COVID-19 compared to international operations.
Want to Make the Most of Improving U.S. Jet Fuel Demand?
With domestic air travel in the United States is slowly looking up — and consequently, jet fuel demand rebounding — it might be a good idea to focus on companies associated with this oil product:
World Fuel Services Corporation (INT - Free Report) : World Fuel Services is engaged in marketing and selling marine, aviation, and land fuel products, plus associated services. The company currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVR Energy, Inc. (CVI - Free Report) : CVR Energy is engaged in the business of petroleum refining and marketing. The Zacks Rank #3 (Hold) company’s output include gasoline, distillate — mainly consisting of diesel fuel, kerosene and jet fuel — and other specialty products.
HollyFrontier Corporation (HFC - Free Report) : HollyFrontier is one of the largest independent refiners and marketers of petroleum products in the United States. The #3 Ranked company manufactures and sells gasoline, diesel fuel, jet fuel and other specialty products.
Par Pacific Holdings, Inc. (PARR - Free Report) : It is a diversified energy company with a portfolio of refining, infrastructure, retail as well as exploration and production assets. The Zacks Rank #3 company’s refining segment churns out diesel, gasoline, jet fuel, marine fuel, low sulfur fuel oil, and other associated products.
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