Jet fuel squeeze looms
- Major airlines are canceling flights and warning of jet fuel shortages that could push summer fares higher. (businessinsider.com) - Industry reporting says jet fuel costs have nearly doubled, raising risks of more cancellations and route cuts. (foxbusiness.com) - Travel experts advise booking now or using points, given rising fuel costs and compressed seat supply. (businessinsider.com)
Airlines are trimming flights and warning of tighter jet fuel supplies as a spring price spike ripples into summer schedules. (cnbc.com) In the U.S., jet fuel climbed from about $2.50 a gallon on February 27 to $4.88 on April 2, CNBC reported, citing industry price data after the U.S. and Israel attacked Iran on February 28. The International Air Transport Association said the global average jet fuel price was still $184.63 a barrel last week, even after a 6.7% weekly drop. (cnbc.com) (iata.org) U.S. spot prices have eased from the early-April peak, but they remain elevated. Airlines for America listed the U.S. jet fuel index at $4.08 a gallon on April 10 and $3.79 on April 17, while Federal Reserve data tied to Energy Information Administration prices showed Gulf Coast jet fuel at $3.748 a gallon for April 13. (airlines.org) (fred.stlouisfed.org) Fuel is usually one of an airline’s biggest costs, often about 25% to 30% of the total, according to analysts cited by CBS News. When carriers have already sold tickets at lower assumed fuel costs, they can respond by cutting flights, dropping weaker routes, or adding fees instead of flying money-losing schedules. (cbsnews.com) That is colliding with a summer market that was already heavily scheduled. Delta spent late 2025 promoting its “biggest transatlantic schedule yet” for summer 2026, and last week said its second-quarter guidance still assumes fuel prices based on the forward curve as of April 2. (news.delta.com) (ir.delta.com) Some disruptions are already visible. Air Canada said on February 9 that it suspended service to Cuba because of an aviation fuel shortage on the island, and KLM has separately extended cancellations on several Middle East routes because of the regional security situation. (aircanada.com) (news.klm.com) Airlines are not all facing the squeeze in the same way. Delta told investors its refinery benefit should contribute about $300 million under its April guidance assumptions, giving it a buffer that carriers without fuel-production assets do not have. (ir.delta.com) For travelers, the immediate effect is less about empty tanks at U.S. airports than about fewer seats at the margins and higher prices on routes airlines decide to keep. If fuel stays near current levels into May and June, carriers will head into the busiest travel period of 2026 with less room to absorb another shock. (airlines.org) (iata.org)
