Data, Efficiency Key to Cutting Airline Fuel Costs -IATA | By Dominick Andoh
Rising jet fuel prices are putting renewed pressure on airlines to find savings through more efficient operations, with data and benchmarking emerging as increasingly important tools for reducing fuel burn.
The International Air Transport Association (IATA) estimates that airlines will spend about $350 billion on fuel in 2026, equivalent to almost a third of industry operating costs. At the same time, airline profit margins are expected to narrow to 2.0% this year from 4.2% in 2025 as higher energy costs weigh on profitability.
The pressure is particularly acute for African carriers, which operate in markets where fuel costs and other operating expenses can significantly constrain margins.
IATA Director of Flight and Operations Stuart Fox notes that airlines increasingly need to look beyond fleet renewal and network changes for additional efficiency gains.
According to IATA, a March survey showed that 90% of airlines consider improving fuel efficiency a priority, rising to 96% among respondents with financial and procurement responsibilities.
IATA said its real-time operational data from more than 240 airlines can help carriers identify fuel-saving opportunities by aircraft type, route, flight phase and geographical region.
Its Fuel Efficiency Gap Analysis and FuelIS platform allow airlines to benchmark their performance against comparable operators and identify practices that may be increasing fuel consumption.
For example, an airline consistently landing with higher fuel reserves than comparable operators could identify an opportunity to improve fuel efficiency, provided safety requirements are maintained.
Ghana Airlines Need to Look Beyond Fuel Prices
For airlines operating from Ghana, the recommendation has particular relevance as fuel remains a major component of operating costs and can directly influence ticket prices and route profitability.
Ghanaian carriers and international airlines operating from Accra International Airport could use operational data more systematically to examine fuel uplift, taxi times, flight planning, aircraft utilisation, reserve fuel practices and route performance.
The objective should not simply be to buy fuel at a lower price, but to avoid burning unnecessary fuel.
This could become increasingly important as Ghana seeks to strengthen Accra’s position as a West African aviation hub. Airlines competing for passengers on regional and long-haul routes will need to control costs while maintaining competitive fares.
Air Traffic Management Also Matters
IATA said airlines cannot achieve maximum efficiency alone. Air navigation service providers also have a role to play by enabling more direct and efficient flight trajectories.
More efficient arrivals and departures can reduce fuel consumption, particularly where aircraft spend extended periods holding or following less direct routings.
For Ghana, closer collaboration among airlines, the Ghana Civil Aviation Authority and air navigation stakeholders to identify operational improvements around Accra and across the Accra FIR is important in achieving this.
Data, Efficiency Key to Cutting Airline Fuel Costs -IATA | AviationGhana
