Fuel hits flights; delivery fees cut

Airlines are cutting flights and retailers are rewriting delivery pricing as fuel costs climb through travel and shipping networks. (cnbc.com) Cathay Pacific said on April 11 it would trim some flights from mid-May through the end of June because jet fuel prices surged with the conflict in the Middle East. In the United States, the Airlines for America jet fuel index showed a simple average price of $4.08 a gallon on April 10. (reuters.com, airlines.org) The International Air Transport Association said the global average jet fuel price rose 7.1% week over week to $209 a barrel in its latest monitor. CNBC reported carriers have responded by trimming schedules, adding surcharges, and raising some fares and fees. (iata.org, cnbc.com) Retailers face the same math in a different form: every order moved from a warehouse or store to a doorstep carries fuel, labor, and routing costs. Walmart says non-members typically pay a $7.95 to $9.95 standard delivery fee, while Walmart+ members do not pay that per-order fee on eligible store deliveries over $35. (walmart.com) That pricing model turns delivery fees into a competitive lever when fuel gets more expensive. Walmart told investors in November 2024 that it had cut U.S. delivery costs by 40% per order for a third straight quarter, giving it more room to use membership and fulfillment scale to absorb part of the pressure. (supplychaindive.com) Amazon is moving in the opposite direction for sellers. Amazon Seller Central says a 3.5% “fuel and logistics-related surcharge” will be added starting April 17, 2026, to Fulfillment by Amazon fees in the United States and Canada and to some cross-border remote fulfillment flows. (sellercentral.amazon.com) Amazon said the surcharge applies to merchants using its logistics network, not directly to shoppers at checkout. That still leaves sellers to decide whether to raise prices, accept lower margins, or hold less inventory in Amazon warehouses. (sellercentral.amazon.com, usatoday.com) Inventory decisions sit underneath both stories. When fuel rises fast, airlines cut less profitable flying and retailers push orders through the cheapest available routes, which can mean fewer delivery windows, more emphasis on memberships, and tighter control over where goods are stored. (iata.org, walmart.com, sellercentral.amazon.com) The immediate question is how long fuel stays elevated. If prices keep rising into late spring, travelers are likely to see leaner schedules and higher fares, while online merchants face a choice between charging more, shipping slower, or eating the extra cost. (iata.org, cnbc.com, sellercentral.amazon.com)