S&P Global Platts joins the group of ALTA affiliate members

Panama, January 28, 2019 – The Latin American and Caribbean Air Transport Association (ALTA) welcomes today S&P Global Platts, an independent provider of information, benchmark prices, and analytics for the energy and commodities markets, to its group of affiliate members and Fuel Committee.
 
S&P Global Platts is home to the leading jet fuel benchmark in the Americas. Its US Gulf Coast jet fuel price assessment is based on active buying and selling by a range of market participants, such as refiners, trading houses, airlines and more, in the Platts Market-On-Close price assessment process, and reported in real-time to the marketplace, including the participants by company name. In Latin America, Platts has published delivered jet fuel assessments for three Mexico ports since 2017 and launched jet fuel pricing for Brazil on October 1, 2018, to capture that country’s growing import market. Platts assesses A-1 jet fuel delivered to the Brazilian ports of Itaqui, Suape, Aratu, Santos and Paranagua on a delivered CFR basis and import parity price basis to provide pricing in multiple regions of the country. The assessments are published in $/barrel and the equivalent Brazilian Real/cubic meter value.
 
Luis Felipe de Oliveira, ALTA’s Executive Director, commented: “We are very pleased to welcome S&P Global Platts as a new ALTA affiliate member and partner in our increasingly strong Fuel Committee. We are confident that S&P Global Platts will provide our members with relevant data from the regional and global markets, while S&P Global Platts will receive valuable insights through the interaction with airlines and other ALTA affiliate members. This new partnership will allow us to have a greater knowledge and coverage of all the markets in the region in order to work even harder in our campaigns to achieve greater transparency in jet fuel prices in our countries and better conditions for the aviation industry to contribute to the economic and social development of the region”.
 
Richard Swann, S&P Global Platts Editorial Director, Americas Oil Markets: “We are committed to better serving the jet fuel and commodity industries in Latin America through our benchmark price assessment processes, analytics and information services and welcome the opportunity to interact with the ALTA members on a regular basis.”
 
It is worth noting, said Swann, that Brazil’s jet fuel prices follow closely with the US Gulf Coast and have averaged a US$5.18-per-barrel premium for supply delivered into the port of Santos ever since the S&P Global Platts Brazil jet price assessments were launched. The Brazil jet fuel premiums to the US Gulf Coast widened in early December amid stronger freight rates but have narrowed in recent weeks as shipping costs have fallen. Brazil jet prices, as valued via the Brazil real, have been under even greater pressure because of a falling USD/Real exchange rate.

“It is an interesting time for air travel in Latin America”, said Lenny Rodriguez, Team Lead, Arbitrage and Latin American Oil Analytics, S&P Global Platts. Not only is the region an attractive destination for tourism and business, but the local population has more access to air travel than ever before.

“Despite important economic slumps in key local markets like Venezuela, Brazil and more recently Argentina, Latin American jet fuel demand has expanded significantly over the last decade, and we expect that trend to continue,” Rodriguez continued. “In 2010, the region’s jet fuel demand was about 330 MB/D. By 2025, we expect consumption to grow by more than 50% to over 500 MB/D. However, challenges remain ahead, such as the pace of infrastructure projects, economic growth and policy changes among other drivers.”
 
ALTA’s Fuel Committee has the aim of identifying opportunities to eliminate unjustified costs and reduce costs related to the supply of jet fuel in the region through the promotion of best practices, transparency and involvement of users.

About S&P Global Platts
At S&P Global Platts, we provide the insights; you make better-informed trading and business decisions with confidence. We’re the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.

S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.platts.com.

Media Contact: Kathleen.tanzy@spglobal.com at 917-331-4607.

About ALTA
ALTA is a private non-profit association serving the airline industry whose objective is to develop a safer, more efficient, and sustainable aviation in Latin America and the Caribbean. ALTA coordinates collaborative efforts throughout the entire value chain maximizing the impact that aviation has on the economic and social growth of the region for the benefit of industry, nations, and populations served by air transport.
www.alta.aero

AIRLINES MEMBER | ASSOCIATE MEMBERS | MEMBERS AFFILIATES

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Media contact:
Nicole Lorca
+507 6113 7040
nlorca@alta.aero

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