US airlines spend $5.06B on jet fuel in March
US carriers paid $5.06 billion for jet fuel in March, a 56% rise from February after the US-Israel-Iran conflict disrupted supply and closed the Strait of Hormuz.
US carriers’ jet fuel bill rose to $5.06 billion in March, a 56% increase from February. The monthly tab increased by $1.83 billion and by $1.16 billion year-over-year. Average jet fuel reached $3.13 per gallon in March, about 31% higher than February and roughly 84% higher over the course of the conflict.
The closure of the Strait of Hormuz reduced oil flows and tightened supplies of refined fuels, driving prices higher. The International Air Transport Association estimates jet fuel typically represents roughly 25% to 30% of an airline’s operating costs.
Airlines have responded by raising fares and baggage fees, trimming routes and cutting onboard services. German carrier Lufthansa plans to eliminate about 20,000 short-haul departures through October. Delta will end food and beverage service on flights under 350 miles beginning May 19. United Airlines and American Airlines lowered their 2026 financial guidance and scaled back growth plans.
Smaller, low-cost carriers have been particularly affected. Spirit Airlines suspended all operations on May 2, 2026, after more than three decades in business. The carrier cited “a sharp rise in oil prices, along with broader business pressures, had severely affected its financial outlook.”
Carriers have indicated they may reduce capacity or make further service changes if fuel prices do not moderate. Airlines are increasing ticket prices and fees and cutting capacity to limit losses while fuel costs take up a larger share of operating budgets.
