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Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 12.25 Billion |
Market Size (2030) | USD 18.50 Billion |
CAGR (2025 - 2030) | 8.60 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
South America Aviation Fuel Market Analysis
The South America Aviation Fuel Market size is estimated at USD 12.25 billion in 2025, and is expected to reach USD 18.50 billion by 2030, at a CAGR of 8.6% during the forecast period (2025-2030).
The South American aviation fuel landscape is undergoing significant transformation driven by extensive aviation infrastructure development and privatization initiatives across the region. Several countries, including Brazil, Honduras, Paraguay, and Peru, have embarked on ambitious airport privatization programs to enhance capacity and operational efficiency. A notable example is Brazil's successful auction of 22 airports for USD 593 million in April 2021, demonstrating the region's commitment to modernizing its aviation infrastructure. These developments are complemented by the construction of new airports and the expansion of existing facilities, such as the Lima International Airport expansion project, which is scheduled for completion in 2024 and will accommodate more than 35 million passengers annually.
The region is witnessing a remarkable shift towards sustainable aviation fuels (SAF), with significant investments and partnerships emerging in this sector. In September 2021, ECB Group initiated the construction of South America's first renewable diesel project in Paraguay, the Omega Green complex, with an investment of USD 800 million. This facility will utilize a diverse range of feedstocks, including soybean oil, pongamia oil, animal fats, and used cooking oil, to produce both renewable diesel and sustainable aviation fuel. The project exemplifies the region's commitment to reducing aviation's environmental impact and establishing itself as a leader in sustainable fuel production.
Regional connectivity is experiencing substantial enhancement through strategic airline expansions and route developments. Less than half of the region's top 20 cities were previously connected by daily flights, creating significant potential for intra-regional traffic growth. Airlines are increasingly focusing on short-haul flights, with low-cost carriers (LCC) and ultra-low-cost carriers (ULCC) gaining momentum. This trend is particularly evident in Brazil, where Boeing projects a demand for 2,610 new aircraft over the next two decades, indicating substantial growth in regional air transportation capacity.
Military modernization efforts are contributing significantly to the aviation fuel market's evolution. Several countries in the region are actively upgrading their air forces, with notable developments in Brazil and Argentina. The Brazilian Air Force's acquisition of 36 Gripen NG fighter aircraft, valued at USD 5.4 billion, and Argentina's planned procurement of 12 JF-17A Block III fighters for USD 664 million in 2021, demonstrate the region's commitment to military aviation advancement. These modernization initiatives are driving demand for specialized aviation fuels and creating opportunities for fuel suppliers to expand their military-grade product offerings.
South America Aviation Fuel Market Trends
Growing Air Traffic and Infrastructure Development
The South American aviation sector is experiencing substantial growth in air traffic, supported by significant infrastructure developments and strategic investments. In December 2022, Latin America and the Caribbean reached a milestone with 32.3 million passengers transported, demonstrating the robust recovery and growing demand for air travel in the region. This surge in passenger traffic has catalyzed major infrastructure investments, exemplified by Air BP's announcement in August 2023 to establish an aircraft fuel supply hub in Paulínia, São Paulo state, with an investment exceeding USD 10 million, alongside plans for a new fuel tank farm at São Paulo Congonhas Airport scheduled for 2024.
The privatization of airports across major economies, including Brazil, Paraguay, and Peru, is driving substantial improvements in aviation infrastructure and capacity enhancement. These privatization initiatives are attracting significant foreign investment and expertise, leading to the modernization of existing facilities and the development of new aviation infrastructure. The expansion of airport capacity and improvement of fueling infrastructure is creating a robust foundation for increased flight frequencies and new route developments, thereby driving the demand for aviation fuel across the region.
Rise of Low-Cost Carriers and Regional Connectivity
The South American aviation landscape is being transformed by the accelerated growth of low-cost carriers (LCCs) and ultra-low-cost carriers (ULCCs), which are outpacing traditional legacy airlines in their expansion. This shift is particularly significant as these carriers are increasing the frequency of short-haul flights within the region, creating new air traffic patterns and fuel demand centers. The LCC model, though relatively recent in South America, has revolutionized the aviation sector by making air travel more accessible through reduced ticket prices, thereby stimulating new demand from previously untapped market segments.
The focus on regional connectivity is evidenced by the increasing number of domestic and short-haul international routes being developed by these carriers. This trend is particularly notable in Brazil, where domestic aviation has shown remarkable resilience and growth, with 731,000 domestic flights recorded in 2022, representing a significant portion of total air traffic. The expansion of regional routes and increased flight frequencies by LCCs is creating a consistent and growing demand for aviation fuel, particularly at regional airports and newly developed aviation hubs. This demand is further supported by advancements in aircraft refueling technologies, ensuring efficient operations.
Sustainable Aviation Initiatives
The aviation industry in South America is increasingly driven by sustainability initiatives and investments in green aviation technologies. A significant development in this direction was marked by Boeing's inauguration of its Engineering and Technology Center in Brazil in October 2023, which joins a global network of 15 Boeing engineering sites dedicated to advancing aerospace innovation. This investment is complemented by Boeing's collaboration with the State University of Campinas (Unicamp) for the development of the third phase of the SAFMaps database, aimed at identifying viable inputs for Sustainable Aviation Fuel (SAF) production in specific regions of Brazil.
The push towards sustainable aviation is creating new opportunities and driving investment in alternative fuel infrastructure and research. Major aviation stakeholders are increasingly focusing on developing sustainable aviation fuel capabilities, with Brazil emerging as a pioneer in this field. The establishment of dedicated research facilities and partnerships between industry leaders and academic institutions is accelerating the development of sustainable aviation technologies and creating a framework for future growth in alternative aviation fuel. These initiatives are not only driving technological advancement but also creating new market opportunities and investment channels in the aviation fuel sector, with a focus on aviation biofuel and green aviation fuel solutions.
Segment Analysis: Fuel Type
Air Turbine Fuel (ATF) Segment in South America Aviation Fuel Market
Air Turbine Fuel (ATF) dominates the South American aviation fuel market, commanding approximately 99% market share in 2024. This overwhelming dominance is primarily due to aviation turbine fuel being the most widely used aviation fuel globally, with different types of ATF used across various geographical regions. In South America, jet fuel Jet A-1 is the most commonly used aircraft turbine fuel due to its lower freezing point of -47°C compared to Jet-A used in the United States. The segment's strong position is supported by its extensive use across commercial airlines, defense aircraft, and general aviation sectors. Major oil companies like Petrobras, Shell, and Air BP maintain sophisticated ATF production and distribution networks throughout South America, ensuring reliable supply to key airports and military installations across the region.
![Market Analysis of South America Aviation Fuel Market: Chart for Fuel Type](https://s3.mordorintelligence.com/south-america-aviation-fuel-market/south-america-aviation-fuel-market-South-America-Aviation-Fuel-Market-Market-Share-by-Fuel-Type-Segment-2024-1737050271996.webp)
Aviation Biofuel Segment in South America Aviation Fuel Market
The Aviation Biofuel segment is emerging as the fastest-growing segment in the South American aviation fuel market for the period 2024-2029. This growth is driven by increasing environmental concerns and the aviation industry's commitment to reducing carbon emissions. Brazil is leading the region's aviation biofuel development, with significant initiatives underway to produce sustainable aviation fuel (SAF) from sugarcane and other feedstocks. The segment's growth is further supported by collaborations between major industry players, with companies like ECB Group developing South America's first renewable diesel and sustainable aviation fuel facility in Paraguay. The Brazilian government's support through programs like "Fuel of the Future" and various state-level initiatives is creating a favorable environment for aviation biofuel adoption, while other countries like Argentina and Peru are also showing increasing interest in sustainable aviation fuel development.
Remaining Segments in Fuel Type
The aviation gasoline (avgas) segment, while smaller in market share, continues to serve specific niche requirements in the South American aviation fuel market. This fuel type is primarily used in aircraft with spark-ignited internal combustion engines, predominantly serving private pilots, flying clubs, flight training operations, and crop dusting activities. However, environmental concerns regarding the lead content in aviation gasoline and the gradual replacement of piston engine aircraft with newer technologies are influencing this segment's market dynamics. Companies like Shell and Air BP continue to maintain aviation gasoline production and distribution capabilities to serve this specialized market segment while also investing in research and development for unleaded alternatives.
Segment Analysis: Application
Commercial Segment in South America Aviation Fuel Market
The commercial segment dominates the South American aviation fuel market, accounting for approximately 86% of the total market share in 2024. This substantial market share is driven by the increasing passenger traffic and air freight movements across the region. The privatization of airports in countries such as Brazil, Jamaica, Honduras, Paraguay, and Peru is expected to develop airport infrastructure and enhance capacity, thereby supporting the growth of commercial aviation fuel demand. Additionally, Boeing has projected a demand for 2,610 new aircraft in the region over the next two decades, indicating strong growth potential for commercial aviation fuel consumption. The segment's dominance is further reinforced by the expansion of low-cost carriers in the region, which are making air travel more accessible and increasing the frequency of flights.
Defense Segment in South America Aviation Fuel Market
The defense segment is projected to experience significant growth in the South American aviation fuel market from 2024 to 2029. This growth is primarily driven by the ongoing modernization and recapitalization of military aircraft fleets across various countries in the region. Several nations are focusing on increasing their air strike capabilities and upgrading their defense air forces. For instance, Brazil's acquisition of 36 Gripen NG fighter aircraft and Argentina's plans to acquire new fighter jets demonstrate the region's commitment to strengthening its military aviation capabilities. The increasing developments in renewable fuels for military aviation fuel and rising defense spending in countries like Brazil, Colombia, and Chile are expected to further accelerate the segment's growth during the forecast period.
Remaining Segments in Application
The general aviation segment plays a crucial role in the South American aviation fuel market, serving various specialized purposes including flight training, business travel, agricultural applications, and emergency medical services. Brazil maintains the second-largest fleet of business aircraft globally, with almost 2,000 executive turboprops and jets connecting over 1,225 municipalities. The segment's significance is particularly evident in regions with challenging geography and limited airport infrastructure, where smaller aircraft provide essential connectivity. The growing number of high-net-worth individuals and increasing emphasis on operational safety from regulatory bodies continue to influence the segment's development in the region.
South America Aviation Fuel Market Geography Segment Analysis
South America Aviation Fuel Market in Brazil
Brazil dominates the South American aviation fuel landscape, commanding approximately 61% of the market share in 2024, while also demonstrating the strongest growth trajectory in the region. The country's aviation fuel infrastructure is extensively developed, with Petrobras playing a pivotal role in production and distribution. Brazil's leadership position is reinforced by its possession of the second-largest fleet of business aircraft globally, connecting nearly 1,225 municipalities compared to just 105 airports served by scheduled operations. The country has been particularly progressive in sustainable aviation initiatives, pioneering the development of renewable fuels from sugarcane. The government's supportive stance, exemplified by the Voo Simples program, has been instrumental in simplifying procedures for the general aviation industry. São Paulo, notably, maintains the world's largest helicopter fleet, with around 450-500 helicopters serving more than 40 helipads across the city, further driving aviation fuel demand. The country's strategic focus on airport privatization and infrastructure development continues to strengthen its position as the regional aviation hub.
South America Aviation Fuel Market in Colombia
Colombia has established itself as a crucial hub in the South American aviation fuel market, with its strategic geographical location facilitating both domestic and international air traffic. The country maintains an impressive network of almost 90 domestic connections and 94 direct international routes, showcasing its robust aviation infrastructure. The Colombian government's commitment to aviation sector development is evident through various infrastructure enhancement projects, including the construction of the new Café Airport. The country's aviation landscape is characterized by a strong domestic market, which accounts for approximately two-thirds of total air passengers. Colombian airports have demonstrated remarkable efficiency in aviation fuel distribution and management systems, with major facilities like Bogotá's El Dorado International Airport setting regional benchmarks. The nation's approach to aviation fuel supply chain management, coupled with its strategic partnerships with major fuel suppliers, has created a resilient and efficient market structure. The government's supportive policies and focus on regional connectivity have further strengthened Colombia's position in the South American aviation sector.
South America Aviation Fuel Market in Argentina
Argentina's aviation fuel market demonstrates significant potential, supported by its well-established network of airports and robust infrastructure. The country's aviation sector is characterized by a mix of commercial, military, and general aviation activities, with major players like YPF S.A. and Pan American Energy SL playing crucial roles in fuel supply. The nation's strategic approach to aviation infrastructure development is evident in its airport modernization initiatives and aviation fuel storage optimization efforts. Argentina's aviation landscape is particularly notable for its extensive domestic network, connecting major cities and remote regions. The country has implemented stringent quality control measures for aviation fuel, ensuring compliance with international standards. The government's focus on developing regional airports and improving connectivity has created new opportunities for fuel suppliers. Argentina's aviation fuel market is further strengthened by its strategic location and role as a key connecting hub for South American air traffic.
South America Aviation Fuel Market in Chile
Chile has emerged as a significant player in the South American aviation fuel market, characterized by its efficient infrastructure and strategic geographical positioning. The country's aviation sector benefits from well-established fuel supply chains and modern airport facilities, particularly at Santiago's international airport. Chile's approach to aviation fuel management is marked by a strong emphasis on quality control and safety standards, with major international fuel suppliers maintaining a significant presence in the market. The nation's aviation infrastructure development continues to evolve, supported by government initiatives to enhance regional connectivity. Chilean airports have demonstrated impressive operational efficiency in fuel management, with sophisticated hydrant systems and storage facilities. The country's commitment to modernizing its aviation infrastructure, coupled with increasing domestic and international air traffic, has strengthened its position in the regional aviation fuel market.
South America Aviation Fuel Market in Other Countries
The aviation fuel markets in other South American countries, including Peru, Bolivia, Ecuador, Paraguay, Uruguay, and Venezuela, each contribute uniquely to the regional aviation landscape. These markets are characterized by varying levels of infrastructure development and different approaches to aviation fuel management. While some countries focus on modernizing their aviation infrastructure, others are working on improving fuel supply chain efficiency. The aviation sectors in these nations are supported by a combination of state-owned and private enterprises, each playing crucial roles in fuel supply and distribution. Regional cooperation in aviation fuel standards and supply chain management has become increasingly important. These markets show potential for growth, particularly in areas of sustainable aviation fuel development and infrastructure modernization, though development patterns vary significantly based on local economic conditions and aviation sector priorities.
South America Aviation Fuel Industry Overview
Top Companies in South America Aviation Fuel Market
The South American aviation fuel market features prominent global energy companies, including Petrobras, Repsol, BP, Shell, TotalEnergies, and ExxonMobil, which have established a strong regional presence through extensive distribution networks and strategic partnerships. These companies are increasingly focusing on sustainable aviation fuel development, particularly in Brazil, where significant investments are being made in renewable fuel technologies and bio-refineries. Market leaders are strengthening their positions through vertical integration, from crude oil production to airport aviation fuel distribution services, while simultaneously expanding their infrastructure capabilities across major South American airports. The industry is witnessing a notable shift toward the digitalization of aviation fuel handling operations, with companies implementing advanced solutions like Shell's SkyPad system to enhance operational efficiency and customer service. Strategic collaborations with local partners, airlines, and research institutions are becoming increasingly important for developing innovative fuel solutions and expanding market reach.
Consolidated Market with Strong Global Players
The South American aviation fuel market demonstrates a moderately consolidated structure, dominated by multinational oil and gas conglomerates with extensive regional operations and established supply chain networks. These major players leverage their integrated business models, combining upstream exploration and production capabilities with downstream refining and distribution operations to maintain competitive advantages. The market exhibits high entry barriers due to significant capital requirements, stringent regulatory compliance needs, and the necessity for extensive infrastructure networks, which have resulted in limited participation from smaller, independent fuel suppliers.
The industry has witnessed strategic consolidations through joint ventures and partnerships, particularly in key markets like Brazil, where companies are combining resources to strengthen their market positions and enhance operational capabilities. Local players maintain relevance through strategic alliances with global companies, contributing valuable regional expertise and established relationships with domestic airports and airlines. The market structure is further characterized by long-term supply agreements with major airlines and airports, creating stable business relationships while limiting opportunities for new entrants to gain significant market share.
Innovation and Sustainability Drive Future Success
Success in the South American aviation fuel market increasingly depends on companies' ability to adapt to evolving environmental regulations and invest in sustainable aviation fuel technologies. Market leaders are strengthening their positions through investments in research and development, particularly in renewable aviation fuel production capabilities and infrastructure modernization. Companies are also focusing on developing comprehensive service offerings, including digital solutions for fuel management and technical consulting services, to create additional value propositions for customers and differentiate themselves in the market.
The market's future competitive dynamics will be shaped by companies' ability to navigate regulatory changes, particularly regarding carbon emissions and sustainable fuel requirements. Success factors include developing efficient supply chain networks, maintaining strong relationships with key stakeholders, and demonstrating commitment to sustainability initiatives. Companies must also consider the growing bargaining power of commercial airlines, which are increasingly demanding sustainable fuel options and competitive pricing structures. The ability to provide reliable aviation fuel supply while meeting environmental standards and maintaining cost competitiveness will be crucial for both established players and new entrants seeking to gain market share.
South America Aviation Fuel Market Leaders
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Petroleo Brasileiro S.A.
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Repsol SA
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BP PLC
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TotalEnergies SE
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Shell PLC
- *Disclaimer: Major Players sorted in no particular order
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South America Aviation Fuel Market News
- January 2024: Emirates has announced the addition of a fifth weekly flight to its Dubai to Rio de Janeiro route, set to commence on December 7, 2024. This supplementary Saturday flight is introduced to bolster the airline's overall capacity to service Rio de Janeiro, catering to the increasing travel demand along this route. Moreover, the integrated service provides passengers the convenience to seamlessly extend their journey to Buenos Aires, the capital of Argentina. This expansion is expected to contribute to the heightened demand for aviation fuels.
- July 2023: In Argentina, Bunge and Chevron's Renewable Energy Group have jointly acquired Chacraservicios. This recent investment in innovative seeds introduces a new oil source into Bunge and Chevron's global supply chains. It is poised to assist both companies in meeting the escalating demand forlower-carbonn renewable feedstocks, particularly for their sustainable aviation fuels.
South America Aviation Fuel Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2029
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Recovering Number of Air Passengers, on Account of the Cheaper Airfare in Recent Times
- 4.5.1.2 Increasing Disposable Income of Population
- 4.5.2 Restraints
- 4.5.2.1 High Share of Fossil-Fuel-Based Aviation Fuels in South American Countries
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitute Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Fuel Type
- 5.1.1 Air Turbine Fuel (ATF)
- 5.1.2 Aviation Biofuel
- 5.1.3 AVGAS
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5.2 Application
- 5.2.1 Commercial
- 5.2.2 Defense
- 5.2.3 General Aviation
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5.3 Geography
- 5.3.1 Brazil
- 5.3.2 Argentina
- 5.3.3 Colombia
- 5.3.4 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Petroleo Brasileiro SA
- 6.3.2 Repsol SA
- 6.3.3 BP PLC
- 6.3.4 Shell PLC
- 6.3.5 TotalEnergies SE
- 6.3.6 Pan American Energy SL
- 6.3.7 Exxon Mobil Corporation
- 6.3.8 Allied Aviation Services Inc.
- *List Not Exhaustive
- 6.4 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Shift Towards Aviation Biofuels
South America Aviation Fuel Industry Segmentation
Aviation fuels are specialized liquid substances specifically designed for use in aircraft propulsion systems. These fuels are crucial for powering various types of aircraft, from commercial airliners to military jets. The primary function of aviation fuels is to provide the necessary energy to support combustion within aircraft engines, generating thrust for propulsion.
The South America aviation fuel market is segmented by fuel type, application, and geography. By fuel type, the market is segmented into air turbine fuel, aviation biofuel, and AVGAS. By application, the market is segmented into commercial, defense, and general aviation. The report also covers the market size and forecasts for the Aviation fuels market across major countries in the region. For each segment, the market sizing and forecasts have been done based on revenue (USD).
Fuel Type | Air Turbine Fuel (ATF) |
Aviation Biofuel | |
AVGAS | |
Application | Commercial |
Defense | |
General Aviation | |
Geography | Brazil |
Argentina | |
Colombia | |
Rest of South America |
South America Aviation Fuel Market Research FAQs
How big is the South America Aviation Fuel Market?
The South America Aviation Fuel Market size is expected to reach USD 12.25 billion in 2025 and grow at a CAGR of 8.60% to reach USD 18.50 billion by 2030.
What is the current South America Aviation Fuel Market size?
In 2025, the South America Aviation Fuel Market size is expected to reach USD 12.25 billion.
Who are the key players in South America Aviation Fuel Market?
Petroleo Brasileiro S.A., Repsol SA, BP PLC, TotalEnergies SE and Shell PLC are the major companies operating in the South America Aviation Fuel Market.
What years does this South America Aviation Fuel Market cover, and what was the market size in 2024?
In 2024, the South America Aviation Fuel Market size was estimated at USD 11.20 billion. The report covers the South America Aviation Fuel Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Aviation Fuel Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America Aviation Fuel Market Research
Mordor Intelligence delivers a comprehensive analysis of the aviation fuel industry. We leverage extensive expertise in aircraft fuel dynamics and aviation turbine fuel technologies. Our research encompasses the complete spectrum of fuel types, including jet fuel, avgas, aviation gasoline, and aviation kerosene. We particularly focus on emerging solutions like SAF (Sustainable Aviation Fuel) and aviation biofuel. The report provides detailed insights into aviation fuel supply chains, aviation fuel storage infrastructure, and aviation fuel distribution networks across South America. It is available as an easy-to-download report PDF.
Our analysis benefits stakeholders across the value chain, from suppliers of commercial aviation fuel to military aviation fuel operators. It offers crucial insights into aircraft refueling operations and the handling of aviation fuel. The report extensively covers emerging trends in sustainable aviation fuel, green aviation fuel, and synthetic jet fuel development. It also examines alternative aviation fuel solutions. Stakeholders gain valuable understanding of Jet B fuel specifications and regional infrastructure requirements. This is supported by comprehensive data on fuel consumption patterns and regulatory frameworks affecting the industry's evolution.