U.S. airlines spent 56.4% more on jet fuel in March than in February after Iran strikes began, raising pressure on fares, fees and summer schedules.
U.S. airlines spent 56.4% more on jet fuel in March than they did in February, a sharp increase that followed the start of U.S.-Israel strikes on Iran and the effective closure of the Strait of Hormuz, government data released Wednesday show.
Carriers paid $5.06 billion for fuel in March, up from $3.23 billion in February, according to Transportation Department figures. The March bill was also 30% higher than in March 2025, underscoring how quickly fuel — airlines’ largest expense after labor — has become a renewed threat to earnings and travel costs.
The pressure did not stop in March. Jet fuel prices climbed further in April, topping $4 a gallon in some markets as the war continued. The Strait of Hormuz is a key energy corridor, with about 20% of the world’s oil and liquefied natural gas typically moving through it, and the timing of any sustained relief remains uncertain.
Airlines have already started adjusting. Some carriers have lowered or withdrawn their 2026 financial forecasts, while others have scaled back growth plans to avoid putting too much costly capacity into the market. Major U.S. carriers also raised checked-bag fees by about $10 per bag in April, with domestic first-bag fees now starting at $45 for most passengers.
Delta is separately ending snacks and drinks for most passengers on flights shorter than 350 miles beginning May 19, while keeping service for Delta First customers. The airline told NPR the change is intended “to create a more consistent experience across our network,” not a stated cost-cutting move, but it comes as carriers look for ways to manage higher operating expenses.
The strain has been especially severe for weaker airlines. Spirit Airlines collapsed over the weekend, and the carrier said the surge in jet fuel costs undermined its plan to emerge from bankruptcy by midyear.
Other major carriers told Wall Street during earnings reports last month that they expect customers to absorb higher fuel costs by early 2027, if not by the end of this year. Industry analysts cited by NPR said airlines have limited room to raise base fares all at once because travelers remain sensitive to price, making fees and schedule changes more likely first steps.
For now, demand has held up. Travel-agency ticket sales rose 12% from a year earlier in March to $10.4 billion, according to the Airlines Reporting Corp. Domestic trips increased 5%, while international trips rose 1%.
The next test is whether fuel prices ease before the peak summer travel season deepens. Even if the geopolitical picture improves, analysts cautioned that lower fuel costs may take weeks or months to flow through to airline pricing and schedules.
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