Jet fuel surges to $209 a barrel amid Middle East conflict, pressuring airlines
- Global jet fuel prices stayed near crisis levels in late April after spiking above $200 a barrel earlier this month, leaving airlines from United to American raising fares, trimming routes and reworking summer plans. - IATA said the global average jet fuel price fell last week to $184.63 a barrel, but that followed an early-April peak around $209; U.S. jet fuel was still $4.19 a gallon on April 24. - The squeeze is spreading from ticket prices to profits, with American saying fuel could add more than $4 billion to its 2026 bill. (reuters.com) (iata.org)
Jet fuel is still running at crisis-era prices, and airlines are passing the shock into summer fares, route cuts and weaker profit forecasts. (iata.org) (airlines.org) The International Air Transport Association said the global average jet fuel price fell 6.7% last week to $184.63 a barrel. That was down from the early-April spike around $209 a barrel that followed the war-linked supply shock. (iata.org) (blog.wego.com) In the United States, Airlines for America’s Argus index put jet fuel at $4.19 a gallon on April 24. CNBC reported U.S. jet fuel had jumped from $2.50 a gallon on February 27 to $4.88 on April 2 after the United States and Israel attacked Iran on February 28. (airlines.org) (cnbc.com) Airlines burn fuel bought in local markets, so the problem is not just crude oil prices. When refining and shipping tighten, the premium on usable jet fuel can jump faster than oil itself, especially in Europe and Asia. (iata.org) (cnbc.com) (aerotime.aero) That has pushed carriers from warning to action. Reuters reported on March 10 that Qantas, Scandinavian Airlines and Air New Zealand raised fares as the Middle East conflict drove fuel costs higher and disrupted key routes. (reuters.com) (money.usnews.com) Route cuts followed. Reuters reported on March 12 that Air New Zealand would slash 5% of its flights, or about 1,100 services, through early May because of the fuel surge. (reuters.com) (whbl.com) U.S. airlines are now giving similar warnings for the peak summer season. ABC News reported United Airlines CEO Scott Kirby said fares may need to rise 15% to 20% to cover fuel, and that more than 5,000 routes across Delta, United and American have been canceled from May through September. (abcnews.com) The pressure is now showing up in earnings guidance. Reuters reported on April 23 that American Airlines cut its 2026 profit forecast and said higher fuel prices could add more than $4 billion to its fuel bill this year if current pricing holds. (reuters.com) (kfgo.com) CNN reported on April 25 that travelers are already seeing the effect in higher long-haul fares and fewer profitable services, with some passengers abandoning trips to Dubai, Bali and Mauritius as prices keep rising. (cnn.com) (kesq.com) Even after the latest weekly pullback, jet fuel remains far above the levels airlines expected at the start of 2026. Unless refinery output and shipping through the Strait of Hormuz normalize, carriers are heading into summer with little room to absorb the bill. (iata.org) (cnbc.com)
