Aviation Fuel Market Report 2026

The aviation fuel market size has grown rapidly in recent years. It will grow from $263.36 billion in 2025 to $298.85 billion in 2026 at a compound annual growth rate (CAGR) of 13.5%. The growth in the historic period can be attributed to growth in commercial air traffic, expansion of global airline fleets, increased military aviation spending, development of global airport infrastructure, rise in international passenger travel.

The aviation fuel market size is expected to see rapid growth in the next few years. It will grow to $499.86 billion in 2030 at a compound annual growth rate (CAGR) of 13.7%. The growth in the forecast period can be attributed to adoption of sustainable aviation fuel mandates, expansion of low cost carriers, modernization of military aircraft fleets, growth in private and business aviation, investments in aviation fuel supply chain resilience. Major trends in the forecast period include shift toward sustainable aviation fuel blending, rising demand for high performance turbine fuels, growth in military grade fuel standardization, increasing focus on fuel quality and safety compliance, expansion of aviation fuel storage and logistics infrastructure.

The growth of air transportation worldwide is fueling the expansion of the aviation fuel market. The increasing population and rising earnings among the middle class have significantly boosted the demand for air travel in both developed and developing nations. As air travel rises, the demand for aviation fuel correspondingly increases, as it is an essential requirement for aircraft operations. For instance, the International Air Transport Association (IATA), a trade association based in Canada, reported that in 2023, revenue passenger kilometers (RPKs) increased by 36.9% compared to 2022. Overall, global traffic for the entire year of 2023 reached 94.1% of pre-pandemic levels. In December 2023, total traffic rose by 25.3% compared to December 2022. Thus, the growing air transportation sector is expected to drive the aviation fuel market.

Major companies operating in the aviation fuel market are innovating new technologies, such as ethanol-based sustainable aviation fuel technology, to increase their profitability in the market. Ethanol-based Sustainable Aviation Fuel (eSAF) is a type of renewable and sustainable alternative fuel designed for use in aviation. They can significantly lower the carbon footprint of air travel and aid in meeting environmental targets set by the aviation industry. For instance, in September 2023, Lummus Technology, a US-based company that provides process technologies, catalysts, and related engineering and project management services for the refining, petrochemical, gas processing, and renewable industries, launched ethanol-based sustainable aviation fuel technology. It is derived from ethanol, which is typically produced from plant-based feedstocks such as corn, sugarcane, or other agricultural residues. The production process involves converting these feedstocks into ethanol, which can then be further processed into eSAF. The technology offers operators a large-scale, economically proven way to lower greenhouse gas emissions from the aviation sector.

In March 2024, Southwest Airlines Company, a U.S.-based airline, acquired SAFFiRE Renewables, LLC for an undisclosed amount. Through this acquisition, Southwest Airlines aims to enhance its sustainable aviation fuel (SAF) capabilities by gaining direct access to SAFFiRE’s technology, which converts agricultural residues into renewable ethanol that can be upgraded into SAF, supporting long-term aviation decarbonization goals. SAFFiRE Renewables, LLC is a U.S.-based company specializing in renewable ethanol production and sustainable aviation fuel conversion technologies.

Major companies operating in the aviation fuel market are BP plc, Chevron Corporation, Exxon Mobil Corporation, PJSC Gazprom, Indian Oil Corporation Limited, Royal Dutch Shell plc (Shell), TotalEnergies, Neste Oyj, World Fuel Service, Valero Energy Corporation, Marathon Petroleum Corporation, Air BP, ConocoPhillips, PetroChina, China Petroleum & Chemical Corporation (Sinopec), Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, Reliance Industries Limited, China National Aviation Fuel Group Corporation, Puma Energy, Vitol, Trafigura, Glencore, Mercuria Energy Group, Gunvor Group, Eastern Aviation Fuels, Aviation Fuel Management, Avfuel Corporation, EPIC Fuels, World Jet Inc.

North America was the largest region in the aviation fuel market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aviation fuel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aviation fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aviation fuel market consists of the sales of fuels and gasoline. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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