US airlines increase fuel costs and prepare for profit decline
Kyiv • UNN
US airline fuel costs have risen by 78% due to the conflict in the Middle East. Global industry profits could be halved by 2026.
In April, U.S. airlines spent over $6 billion on jet fuel, a 78% increase from a year earlier, despite slightly lower consumption volumes. This is according to government data released on Monday. Meanwhile, a leading global industry trade group warned that soaring energy costs could cut airline profits in 2026 by nearly half. This was reported by the Associated Press, according to UNN.
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Since conflict flared in the Middle East earlier this year after the U.S. and Israel launched strikes on Iran, much of the shipping through the Strait of Hormuz — a critical oil transit route bordering Iran — remains effectively blocked, pushing oil and jet fuel prices upward.
In an effort to contain costs, airlines around the world have raised airfares and fees, eliminated other perks, and canceled flights or reduced schedules.
According to the Bureau of Transportation Statistics, U.S. carriers spent nearly $6.5 billion on fuel in April, compared to approximately $3.6 billion a year earlier. Fuel consumption in April totaled 1.573 billion gallons, slightly down from 1.575 billion gallons during the same period last year.
The latest figures come amid a report from the International Air Transport Association (IATA) published Sunday. It stated that the currently expected aggregate net profit for airlines worldwide in 2026 will be $23 billion. This is significantly lower than the previous forecast of $41 billion and less than the $45 billion earned in 2025.
Airlines are taking the brunt of the fuel price shock. While ticket prices are rising, airlines are still covering part of this increase out of their own net profits,
The group reported that the average price of jet fuel in 2026 is expected to be $152 per barrel, nearly 70% higher than in 2025. This will increase global airline fuel costs to about $350 billion, compared to $252 billion a year earlier. IATA noted that fuel is projected to account for over 31% of airline operating costs in 2026, up from about 25% last year.
In the U.S., the cost per gallon of jet fuel in April was $4.11, according to the Bureau of Transportation Statistics. Last April, it was $2.31.
In a sign of the conflict's lasting impact on travel, American Airlines said last week it was suspending some of its routes for this summer. In April, Lufthansa Group reported it would cut 20,000 short-haul flights through October, and Air Canada announced the suspension of flights to John F. Kennedy International Airport in New York from June through the end of October.
Other airlines — from U.S. carriers like United and Delta to Air France-KLM, Philippine Airlines, and Cathay Pacific in Europe and Asia — have either cut flights, adjusted their schedules, or canceled plans to increase seat capacity and routes this year.
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