US Airlines’ March Jet Fuel Bill Rises to $5.06B

US airlines spent $5.06 billion on jet fuel in March, a 56% increase from February, after the conflict involving the US, Israel and Iran and the closure of the Strait of Hormuz reduced tanker access and tightened supply.

Fuel expenses rose by $1.83 billion month-over-month and by $1.16 billion year-over-year. The average jet fuel price reached $3.13 per gallon in March, nearly 31% higher than in February. Industry data show jet fuel typically accounts for about 25% to 30% of an airline’s operating costs.

Airlines have taken a range of measures to respond to higher fuel costs. Several carriers raised fares and baggage fees, trimmed routes, and cut onboard services. German flag carrier Lufthansa plans to cancel roughly 20,000 short-haul departures through October. Delta Air Lines will end food and beverage service on flights under 350 miles starting May 19.

United Airlines and American Airlines reduced their 2026 financial outlooks. The Kobeissi Letter wrote that major carriers have withdrawn or significantly reduced 2026 guidance and are scaling back growth plans to avoid operating unprofitable routes at elevated fuel prices, and that some expect passengers to absorb higher jet fuel costs by late 2026 or early 2027.

The strain on smaller carriers has been severe. Spirit Airlines suspended all operations on May 2, citing “a sharp rise in oil prices, along with broader business pressures,” as having severely affected its financial outlook.

Market measures show jet fuel prices have climbed sharply since the start of the conflict. Average ticket prices rose about 9% over one recent week. The Strait of Hormuz remains closed to tanker traffic, affecting fuel flows used to supply aviation markets.

Airlines have limited near-term options: they are increasing fares and fees, reducing capacity on certain routes, and tightening onboard and operational costs. Supply conditions and carrier decisions on schedules and capacity will determine how long elevated fuel bills affect airlines and their financial guidance.