Jet fuel doubles, fares rise

Jet fuel prices in the United States have nearly doubled in recent weeks, and airlines are moving to charge travelers more for summer trips. (cnbc.com) United Airlines chief executive Scott Kirby said on April 22 that ticket prices may need to rise 15% to 20% to offset the fuel surge. Reuters reported United had already pushed through fare increases and baggage-fee hikes before that warning. (money.usnews.com) American Airlines cut its 2026 profit forecast on April 23 and said its jet fuel bill could rise by more than $4 billion this year, with second-quarter fuel around $4 a gallon. Reuters said the fuel shock has spread across carriers as the Iran war drives up costs. (msn.com) Jet fuel is usually an airline’s second-biggest expense after labor, so a fast price jump hits routes, schedules, and fares almost at once. The International Air Transport Association said fuel typically accounts for about 27% of airline costs. (985theriver.com) Some airlines are not just raising prices; they are also trimming flying. Reuters reported in late March that carriers including United, SAS, and Air New Zealand were cutting capacity or reworking networks as fuel costs climbed. (money.usnews.com) The price pressure is already showing up in U.S. inflation data. Bureau of Labor Statistics data released April 10 showed airline fares were up 14.9% from a year earlier in March, while the overall Consumer Price Index rose 3.3%. (fred.stlouisfed.org) (bls.gov) That leaves airlines testing how much of the fuel spike travelers will absorb during the peak summer season. Kirby said United wants to recover the full added fuel cost, and competitors are signaling the same pressure in their forecasts. (money.usnews.com) (msn.com)