Fuel squeeze nudges airfares up
Rising fuel costs are pushing airfares higher and experts in Portland say the price pressure could last more than a year, prompting advice to book early for summer travel. Reuters added that Europe’s summer flights face extra risk because the Iran war has exposed refining weaknesses that could tighten jet‑fuel supply. (kgw.com) (reuters.com)
Airfares are rising as jet fuel gets more expensive, and travel agents in Oregon say summer international tickets are already sharply higher. (kgw.com) KGW reported on April 14 that some airlines are adding fuel surcharges, while Lake Oswego agent Jamie Anderson said Europe fares are running 30% to 50% above last year. University of Portland economist Bahram Adrangi told the station elevated prices could last six months to a year and a half. (kgw.com) The fuel move is visible in market data. The Argus United States jet fuel index was $4.08 a gallon on April 10, and the U.S. Gulf Coast kerosene-type jet fuel spot price was $4.136 a gallon on April 6, according to Airlines for America and the Federal Reserve Bank of St. Louis series built from Energy Information Administration data. (airlines.org) (fred.stlouisfed.org) Globally, the International Air Transport Association said the average jet fuel price in the latest reported week was $197.83 a barrel. That is the basic pressure point for airlines, because fuel is typically one of their biggest operating costs. (iata.org) (money.usnews.com) The consumer data is starting to catch up. The U.S. Bureau of Labor Statistics said airline fares were up 14.9% over the 12 months through March 2026, in a month when overall consumer prices rose 0.9%. (bls.gov) (fred.stlouisfed.org) Europe faces a second problem beyond higher crude prices: getting enough jet fuel to airports. Reuters reported on April 15 that Europe depends on the Middle East for nearly 75% of its jet fuel imports, or about 375,000 barrels a day, and that disruption through the Strait of Hormuz has forced the region to pull in record cargoes from the United States. (money.usnews.com) Those replacement barrels are large, but not complete. Reuters said Europe’s inflows from the United States were running between 149,000 and 200,000 barrels a day in April, while the International Energy Agency warned stocks could hit a 23-day level in June if Europe cannot replace more than half of the lost Middle East supply. (money.usnews.com) The squeeze is also about refining, not just oil wells. Hydrocarbon Processing, summarizing the Reuters report, said Europe has shut more than 30 refineries over 25 years, equal to about 16% of refining capacity, leaving the region more exposed when overseas supply is interrupted. (hydrocarbonprocessing.com) In Oregon, drivers are seeing the same energy shock at street level. AAA listed Oregon’s average regular gasoline price at $4.989 a gallon on April 14, compared with a national average of $4.118. (aaa.com) For travelers, the near-term math is simple: airlines are paying more for fuel, Europe’s supply chain is tighter than the United States’, and agents in Portland are telling people to book earlier if they want summer seats before the next fare reset. (kgw.com) (money.usnews.com)
