US says airline jet fuel costs jumped 56% in March, amid US-Israel war with Iran
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Surging jet fuel prices have created the air travel industry’s biggest crisis since the Covid-19 pandemic.
PHOTO: BLOOMBERG
- US airlines spent US$5 billion on jet fuel in March, a 56% rise from February, due to Strait of Hormuz disruptions from the US-Israeli war with Iran, causing a major industry crisis.
- Ultra-low cost carrier Spirit Airlines ceased operations on May 2, citing an additional US$100 million in fuel costs in March and April as its restructuring plan failed.
- Airlines are "suffering" from high fuel prices. Low-cost carriers sought a US$2.5 billion bailout, but Transportation Secretary Sean Duffy deemed it unnecessary "at this point".
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WASHINGTON - Major US passenger airlines spent just over US$5 billion (S$6.3 billion) on jet fuel in March, up US$1.8 billion, or 56 per cent, from what they spent in February, the US Transportation Department (USDOT) said on May 6.
The cost per gallon of fuel in March was US$3.13, up 74 cents, and 31 per cent over February. Fuel use rose 20 per cent in March, USDOT added.
Since the US-Israeli war with Iran began, disruptions to shipping through the Strait of Hormuz have roiled global oil markets. Surging jet fuel prices have created the air travel industry’s biggest crisis since the Covid-19 pandemic.
Airlines spent US$3.88 billion in March 2025 on jet fuel, far below the US$5.06 billion they spent in March 2026.
Major US carriers have hiked air fares and baggage fees, cutting some routes and making other cost cuts. Fuel accounts for up to a quarter of airline operating expenses.
Ultra-low-cost carrier Spirit Airlines, which ceased operations on May 2, said this week it paid US$100 million in additional fuel costs in March and April. It cited the fuel spike as the reason its restructuring plan failed and it was forced to end operations.
“Every airline is suffering from high fuel prices,” Southwest Airlines chief executive Bob Jordan told Reuters last week. “It’s your job to build your business in a way that you’re resilient and you can survive these things because they happen.”
Low-cost carriers in April asked USDOT for a US$2.5 billion government bailout to address higher fuel costs, but Transportation Secretary Sean Duffy said he did not think that was necessary “at this point”. REUTERS
