Swine flu could hit already ailing fuel demand

NEW YORK (Reuters) – The widening outbreak of swine flu could further quash already weak jet fuel demand if it grows to rival the SARS epidemic that hit global travel six years ago.

Already the United States and Europe have urged caution over travel to Mexico, where the virus has killed over 100 people, and panicked sellers on Monday sold the world’s top airline brands.

“It could hurt (jet) demand here as I see more and more countries are putting out travel warnings,” said Mike Zarembski, senior commodities analyst for optionsXpress in Chicago. “The airline business has already been reeling due to the economic crisis.”

Jet fuel demand has already been battered as the economic crisis curtails travel for business and leisure, down 13.7 percent against year-ago levels, according to the International Energy Agency.

Reuters