North America Aviation Fuel Market Analysis, by fuel type (air turbine fuel, aviation biofuel, and AVGAS), application (commercial, defence, and general aviation), and Country (U.S., Canada, Mexico)—Market Size, Share, Trends & Forecast 2025-2035

North America Aviation Fuel Market: Overview

The North America Aviation Fuel market estimated at USD 64.34 billion in 2024, and is projected to reach approximately USD 79.09 billion by 2035, at a CAGR of 6.2% from 2025 to 2035.

The North American aviation fuel market is shaped by a combination of growing air travel, technological advancements, regulatory pressures, and geopolitical factors. While traditional jet fuel remains the dominant fuel source, the market is undergoing a transformation driven by the push for sustainability, technological innovation, and shifting demand patterns. Sustainable Aviation Fuels (SAF) and alternative energy sources are emerging as key players in shaping the future of the market. However, in the short term, the ongoing recovery of air travel, fleet expansion, and economic growth continue to drive demand for aviation fuel.

The increasing demand for private and business aviation is a significant driver of the North American aviation fuel market. The rise in luxury travel, corporate fleet expansion, and private jet charters, coupled with advancements in aircraft technology, are all contributing factors. Additionally, sustainability trends and the evolving preferences of high-net-worth individuals ensure that the private aviation sector will continue to be a key segment influencing overall fuel consumption in the region.

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Market Growth Drivers

Increasing Air Travel Demand Fuels the Market

As the global economy recovers, there is a steady rise in passenger traffic, which increases the demand for jet fuel. The continued growth in both business and leisure travel further fuels this upward trend. The growth of e-commerce and global supply chains has significantly increased demand for air cargo services. As more goods are transported by air, the need for aviation fuel to power freighter aircraft also rises. After the significant disruption caused by the COVID-19 pandemic, air travel has experienced a strong recovery, particularly in North America. The increased number of passengers, both domestic and international, has led to higher demand for aviation fuel as airlines ramp up operations.

Growing Demand for Private and Business Aviation

The demand for private aviation has surged, particularly post-pandemic, with more individuals and businesses using private jets for convenience, safety, and time efficiency. Private and business jets use specialized aviation fuel (avgas and jet A) and contribute to the overall demand in the aviation fuel market. Increased business activity, especially with the rise of remote work and business travel, has led to an uptick in corporate aviation demand. Many companies prefer private aircraft for efficiency, which drives fuel consumption for smaller and corporate aircraft. Companies increasingly rely on private jets for business travel, especially those with frequent cross-country or international meetings. Having a private fleet of aircraft or leasing private jet services allows companies to maintain flexibility and optimize executives' travel schedules. For many businesses, chartering a jet or owning a fractional share of an aircraft can be more cost-effective than booking commercial flights, especially for high-level executives. The increasing reliance on private aircraft for business purposes translates directly into higher demand for aviation fuel.

Market Restraints

Volatility of Crude oil Prices  

Aviation fuel is derived from crude oil, so fluctuations in global oil prices directly impact the cost of aviation fuel. When oil prices spike due to geopolitical instability, natural disasters, or supply chain disruptions, airlines and aviation operators face higher fuel costs, which can increase ticket prices and decrease overall demand for air travel. Volatile fuel costs lead to unpredictable profit margins for airlines, which often cannot fully pass on these costs to consumers, particularly during economic downturns or periods of low demand. 

Environmental Regulation and Regulatory Challenges

Governments and environmental agencies are imposing stricter regulations to reduce the aviation industry’s carbon emissions. While this is pushing the industry toward more sustainable practices, the transition from traditional jet fuel to alternative fuels such as Sustainable Aviation Fuels (SAF) or hydrogen presents challenges, such as high production costs and limited supply. Airlines and aviation companies must invest in cleaner technologies, fuel-efficient aircraft, and carbon offset programs to comply with increasingly stringent environmental regulations. These investments could slow down growth and increase operational costs in the short term.

Market Opportunities

Investment in Fuel Infrastructure  

There is a significant opportunity in upgrading fueling infrastructure to meet future demands for cleaner fuels and increased air traffic. Investments in pipelines, storage facilities, and fuel depots, especially in major hub airports, can streamline fuel delivery systems and improve efficiency. The development of hydrogen fuel infrastructure could provide a new avenue for innovation in the aviation fuel market, especially if hydrogen-powered aircraft become commercially viable. Building out hydrogen refueling infrastructure at airports would be a significant step toward diversifying the aviation fuel supply.

Technological Innovations

The development of more fuel-efficient aircraft, including the use of electric and hybrid-electric planes, presents a significant opportunity. If these technologies are successfully commercialized, they will reduce fuel consumption, lower operating costs for airlines, and create a demand for cleaner fuel options. The use of artificial intelligence (AI), machine learning, and advanced analytics to optimize flight paths, reduce fuel consumption, and enhance fuel efficiency presents another opportunity for the aviation fuel market. Airlines adopting these technologies can reduce overall fuel use, benefiting both the environment and the bottom line.

Aircraft tires Market: Report Scope

Market Analysis: By Fuel Type

Based on Fuel Type, the aviation fuel market has been divided into air turbine fuel, aviation biofuel, and AVGAS. Air turbine fuel, specifically Jet A-1 and its variations, dominates the aviation fuel market, holding the largest share. This is the primary fuel used by the vast majority of commercial, military, and larger general aviation aircraft worldwide. With the majority of global air traffic being powered by jet engines, commercial airlines are the largest consumers of air turbine fuel. The increasing number of flights, as well as the expansion of airline fleets, continues to drive the demand for jet fuel.

Market Analysis: By Application

Based on Application, the aviation fuel market has been divided into commercial, defense, and general aviation. The commercial aviation segment holds the largest share of the aviation fuel market. This is because commercial airliners, which include both domestic and international flights, consume the highest amount of fuel in the aviation industry. Commercial airlines operate large fleets of aircraft (e.g., Boeing 737, Airbus A320, Boeing 787, Airbus A350) and are responsible for the majority of global air traffic, both passenger and cargo. This extensive network of flights means that commercial aviation uses the most fuel, especially considering long-haul international flights. With population growth, rising disposable incomes, and greater connectivity, demand for commercial air travel continues to rise. 

Competitive Landscape 

The asia-pacific aviation fuel industry is dominated by businesses like BP PLC, Shell PLC, TotalEnergies SE, Pan American Energy S.L., Exxon Mobil Corporation, Allied Aviation Services Inc, Chevron Corporation, Honeywell International Inc, Valero because of their unique product offerings, financial stability, strategic innovations, and regionally diverse presence. The participants are focusing their efforts on promoting R&D. Additionally, they support strategic expansion activities including product launch, joint ventures, and partnerships to expand their client base and boost their market position. Some of the prominent players in the market include, BP PLC, Shell PLC, TotalEnergies SE, Pan American Energy S.L., Exxon Mobil Corporation, Allied Aviation Services Inc, Chevron Corporation, Honeywell International Inc, Valero

Strategic Developments

• December 2021, Aemetis signed a USD 2.1 billion sustainable aviation fuel supply agreement with Delta Air Lines to supply approximately 250 million gallons under a 10-year agreement. In addition to America, Aemetis has also signed memorandums of understanding to supply 280 million gallons for delivery to the San Francisco Airport. 
• May 2022, United Airlines became the first United States airline to sign an international purchase agreement for sustainable aviation fuel (SAF). The airline has signed a new purchase agreement with Neste that provides United the right to buy up to 52.5 million gallons over the next three years.