Jet Fuel Bills Surge as US Carriers Spend $5 Billion in March

US airlines spent $5.06 billion on jet fuel in March. This marked a 56% jump from February, after the war between the US, Israel, and Iran disrupted global oil supply. The Kobeissi Letter highlighted that fuel costs surged $1.83 billion month-over-month and $1.16 billion year-over-year. Per-gallon prices hit $3.13, up nearly 31% from February. US Airlines Face Rising Jet Fuel Costs as Iran War Squeezes Supply The closure of the Strait of Hormuz, a vital oil transit corridor, sent jet fuel prices climbing. Jet fuel typically represents 25% to 30% of an airlines total operating costs, according to IATA. With margins squeezed, major carriers have responded by raising fares and baggage fees, trimming routes, and cutting costs. German flag carrier Lufthansa plans to cut 20,000 short-haul departures through October. Delta also announced that it will end food and beverage service on flights under 350 miles beginning May 19, the latest sign of belt-tightening across the sector. Reporter: Airfares are probably going to go even higher before the summer. Jet fuel prices have gone up 84% over the course of the war. If you're an airline, what do you do? You cut flights, and that lifts airfares. Airfares are up about 9% over the past week alone. Meanwhile, United and American Airlines have slashed their 2026 financial outlooks. Major carriers, including Delta, have already withdrawn or significantly reduced their 2026 financial guidance, with some scaling back growth plans to avoid operating unprofitable routes at elevated fuel prices. Furthermore, several major carriers now expect customers to absorb higher jet fuel costs by the end of 2026 or early 2027, The Kobeissi Letter wrote. Spirit Airlines suspended all operations early on May 2, 2026, bringing an end to more than three decades of service. In a statement, the airline said a sharp rise in oil prices, along with broader business pressures, had severely affected its financial outlook. With the Strait of Hormuz still closed, elevated April fuel costs will come as no surprise. As long as tensions persist, so will the pressure on US airlines.