Some airlines benefit from a weaker US dollar: IATA

Airlines marginally benefited in the first half of 2025 as the US dollar depreciated by 7% against its trading partners’ currencies, according to an IATA report.   

Jet fuel is airlines’ largest cost component (closely matched by labor costs), and it is usually traded in US dollars. The price of jet fuel has also fallen in 2025, by approximately 6% over the first six months, allowing for a combined savings of roughly 12% on the fuel bill for non-USD-based carriers, equating to a reduction in total costs of around 3%, the report said.

Other dollar-linked costs, such as maintenance and repairs, payments for aircraft, and interest on dollar-priced loans, also became cheaper for non-dollar-based carriers.

In 2024, maintenance represented around 8% of operating costs, while aircraft ownership, including leasing and depreciation, accounted for about 11%.

The overall impact on operating expenses of the lower fuel price and the weaker USD as it pertains to these dollar-denominated cost components is approximately 4.5% during the first half of 2025, on average, for non-dollar-based carriers.

The Chinese yuan and the Indian rupee remained virtually unchanged against the dollar, excluding them from the benefits of the general dollar decline.
The Turkish lira and the Argentine peso are at the losing end of the spectrum, having depreciated by 11% and 14% against the dollar, respectively.
All the bills' carriers in those countries that pay in US dollars will increase accordingly, in local currency terms.