Jet fuel Prices are Soaring in Panama Putting Pressure on Airlines to Create More Expensive Tickets?

Tensions in the Middle East are putting upward pressure on prices worldwide. One of the most direct impacts is on the price of oil and its derivatives.  Land, sea and air transport depend on fossil fuels, so every time the price of a barrel of oil skyrockets, an entire global supply and mobility chain is affected.  The report monitoring jet fuel prices, the special fuel for aviation, prepared by the International Air Transport Association with data from Platts and S&P Global, reveals that this input increased 7.4% in one week and reached $194.90 per barrel at the close of September 18.  The value also represents an increase of 24.2% compared to the average of the previous month and a rise of 116.5% compared to the same period last year.

$194.90

Per barrel is the global average price of jet fuel in the week ending September 18, 2026.

116.5%

The price of jet fuel experienced an increase in one year.

$31.03

Jet fuel has seen a sharp increase: it went from $163.87 per barrel on August 21 to $194.90 on September 18, an increase of $31.03 per barrel in five weeks.

Airlines negotiate fuel hedging three to six months or more in advance to guarantee supply and inventory, which in some cases may mitigate the immediate increase in ticket prices, but its real impact may be felt sooner or later.  On average, fuel costs for an airline represent between 30% and 50% of its expense structure, according to IATA estimates.   Some airlines choose to reduce routes that are not as profitable in terms of seat occupancy, while others inevitably pass on the fuel price increase to airfare.

Looking For Tickets?

But how does all this affect travelers? A ticket to New York from Panama that used to cost less than $600 can now be approaching $1,000 depending on the day and the airline.  A Google search for flights to travel from Panama on December 8, 2026 shows fares ranging from $740 for flights with a layover in Bogotá of up to 10.5 hours, or $784 for a direct round-trip flight.  Other options with layovers in Miami start at $900, and direct flights with US airlines start at $1,002.  Prices vary depending on the airline, seat selection, ticket type, and travel dates.  For the national holidays, that is, in November, for the same destination there are tickets departing from Panama on November 1st for $654, others for $740 and up.

A round-trip flight between Panama and Madrid for December 2026 has prices starting from $1,132 with all fees and mandatory taxes included.  The cheapest option involves a direct journey with an approximate duration of 9 hours and 35 minutes, while other alternatives with a stopover range between $1,323 and $1,421, with travel times exceeding 13 hours.  Tour operators recommend booking between 5 and 3 months in advance to take advantage of offers, or even hiring staggered payment plans to book tours and find deals.

“Fuel prices are 90% above the 2025 average, putting significant pressure on airline costs.” says Peter Cerdá pictured below, IATA Vice President for the Americas and CEO of ALTA.

Peter Cerdá, Regional Vice President for the Americas of the International Air Transport Association (IATA).

Peter Cerdá, IATA’s Vice President for the Americas and CEO of the Latin American and Caribbean Air Transport Association, warned that in this context of cost pressures for airlines with sharp increases in aviation fuel due to geopolitical tensions, it is essential that government regulatory decisions preserve the competitiveness of air transport and promote connectivity rather than making it more expensive. IATA has always warned that a large part of the cost of tickets goes towards fees and taxes charged by airports and governments to both transit passengers and passengers on the service.

“Aviation is an engine of economic and social development for the region, and avoiding additional burdens will be key to continuing to boost growth, tourism, trade and job creation.” says Peter Cerdá, IATA Vice President for the Americas and CEO of ALTA.

Ricardo Del Piano pictured below, an aviation expert based in Chile, points out that although there is strong pressure from fuel costs, the position of Latin American airlines is more advantageous compared to markets more exposed to the conflict in the Middle East, such as those in that region, as well as Asian and European airlines.

“Airlines purchase fuel hedging up to six months in advance at the prevailing price. The passenger fares we are seeing now reflect fuel prices from the previous six months.” says Ricardo del Piano, aviation expert.

Despite the high price outlook, consumers in Latin America and the Caribbean continue to opt for travel both within the region and to other continents.  ALTA data indicates that around 43.1 million passengers traveled across the region at the end of July, a year-on-year growth of 0.7%.  Brazil, Mexico, and Colombia all returned to growth simultaneously, while Panama maintained double-digit expansion. Between January and July, the region handled 283.1 million passengers, 2.0% more than in the same period of 2015.

15.8

Millions of passengers accumulated January-August 2026, in Tocumen, reflecting 15% growth.

68,905

Travelers move on average daily through the main Panamanian airport.

799,639

Travelers had their destination Bogotá from Panama, the second most in-demand city was Miami with 632,473 passengers.

Panama is one of the fastest growing markets; as of the end of August, which are the most recent figures, 2.13 million passengers traveled through Tocumen Airport, and in 8 months the total reached more than 15.85 million travelers.  Traffic maintained the airport’s international profile: 74% of passengers were connecting travelers.  During August, 277,653 people disembarked at Tocumen bound for Panama City, while 270,707 passengers boarded flights departing from the country.