Jet‑fuel squeeze lifts fares

Jet fuel prices are rising fast again, and airlines are already warning that tighter supply is feeding into higher fares and new fuel surcharges. (iata.org) The International Air Transport Association said the global average jet fuel price rose 7.1% in the latest week to $209 a barrel. In the United States, Airlines for America put the Argus average jet-fuel spot price at $4.08 a gallon on April 10, 2026. (iata.org) (airlines.org) The squeeze is showing up in local markets first. Reuters reported on April 7 that Chicago jet fuel topped $5 a gallon, while local suppliers had to step in the same day to avert disruptions at four Italian airports. (msn.com 1) (msn.com 2) Jet fuel is not pumped straight from the ground. Refineries turn crude oil into several products, and aviation fuel comes from the middle slice of that process, where it competes with diesel and other fuels for capacity. (gulfnews.com) (iata.org) That matters because jet fuel is a relatively small part of the refinery slate. IATA says it makes up about 9% of global refined output, even as demand is projected to grow by nearly 4% in both 2025 and 2026. (iata.org) When a refinery goes down for maintenance, or when shipping routes are disrupted, airlines cannot easily replace that fuel with another grade. Reuters reported on April 10 that Europe’s airport group warned the region could face a systemic jet-fuel shortage within three weeks without action to secure supplies. (msn.com) The pressure is colliding with a travel market that is still expanding. IATA expects 5.2 billion passengers in 2026 and a record 83.8% load factor, which leaves airlines with less spare capacity to absorb fuel shocks without raising prices. (iata.org) Governments and airlines were not expecting this kind of spring spike. IATA’s December 2025 fuel fact sheet assumed an average 2026 jet fuel price of $88 a barrel, far below the $209 a barrel in its latest weekly monitor. (iata.org 1) (iata.org 2) Supply was already looking tight before this month’s disruptions. The United States Energy Information Administration said in March 2025 that inventories of gasoline, distillate and jet fuel in 2026 were on track to end the year at their lowest level since 2000 because of refinery closures and rising consumption. (eia.gov) There is no quick fix if the bottleneck is refining rather than crude oil. That is why a fuel squeeze that starts at a refinery gate can end up on a passenger’s receipt as a higher base fare, a fuel surcharge, or both. (gulfnews.com)