Beyond the runway: How airports manage through rising jet fuel prices
Key takeaways
- Fuel volatility shaping airline economics. Energy markets have reacted to the Iran conflict, with jet fuel prices volatile and expected to remain elevated in the near-term, shaping airline economics more than supply constraints.
- System stability amid pricing pressures. Airports are experiencing some impact, such as lower load factors on certain routes, but overall performance remains stable, with these effects typically temporary.
- Airports offer uncorrelated portfolio exposure. Airports remain a differentiated component of infrastructure portfolios, particularly where larger, more diversified assets are supported by strong fundamental value drivers.
While fuel prices can move sharply, fare increases tend to be more measured, with airlines balancing cost recovery against demand sensitivity.
Jet fuel price volatility continues to shape airline economics, but for airports the impact is more contained, with resilience driven by diversification and the strength of multiple revenue streams.
Maximilian Fieguth
Max leads a team of Asset Management professionals responsible for implementing value creation opportunities across the IFM infrastructure portfolio, delivering global best practice initiatives, and supporting the execution of infrastructure transactions.
Ashwin Mathur
Ashwin heads up the Infrastructure Portfolio Management Team, and is responsible for a broad set of portfolio construction, risk management and fund analysis outcomes across all of IFM Investors’ infrastructure products.
Abbie Sui
Abbie is a senior member of the Infrastructure Portfolio Management Team, responsible for a broad set of portfolio construction, risk management and fund analysis outcomes across all of IFM Investors’ infrastructure products as well as asset management of Adelaide Airport.
Drummond Clark
Drummond is a Vice President in IFM Investors’ Infrastructure team, based in London. He is responsible for the origination, execution and asset management of infrastructure investments across Europe.
Related articles
PM700 investors display growing hunger for infrastructure assets
Adding value through active management and capital reinvestment
The infrastructure growth engine: Creating tomorrow’s core infrastructure today
