Post by : Badri Ariffin

Airlines around the globe are increasingly burdened by soaring jet fuel prices, a situation exacerbated by escalating tensions in the Middle East and interruptions in worldwide oil supply chains.

Data from the US Bureau of Transportation Statistics reveals that US-based airlines incurred jet fuel costs of nearly $6.5 billion in April 2026, marking a staggering 78 percent spike from approximately $3.6 billion during the same month last year, despite a slight decrease in fuel use—from 1.575 billion gallons to 1.573 billion gallons.

The rising fuel expenses can be attributed to disruptions in shipping traffic via the Strait of Hormuz, a critical oil transport channel adjacent to Iran. The ongoing conflict in the Middle East has intensified oil and jet fuel prices, leading to heightened operational costs for airlines across the globe.

The International Air Transport Association (IATA) has cautioned that these surging fuel prices may significantly hinder airline profitability. The organization has revised its forecast for global airline net profits in 2026 to $23 billion, a drastic reduction from its previous estimate of $41 billion and down from $45 billion earned in 2025.

IATA’s Director General, Willie Walsh, indicated that airlines are shouldering a large part of the fuel cost increase. Although ticket prices have gone up, airlines continue to absorb substantial portions of the additional expenses.

The association has predicted that the average price of jet fuel will hit $152 per barrel in 2026, nearly 70 percent more than last year. Consequently, the total fuel expenditure for the global airline industry is forecasted to reach around $350 billion—up from $252 billion in 2025. It is expected that fuel will constitute over 31 percent of airline operating expenses this year, a rise from about 25 percent the previous year.

In the United States alone, jet fuel prices averaged $4.11 per gallon in April, compared to $2.31 per gallon a year prior.

To control escalating operational costs, airlines worldwide are raising airfares, tacking on service fees, limiting passenger perks, and altering flight schedules. Notably, several major airlines have either cancelled routes or postponed expansion initiatives.

American Airlines recently declared the suspension of select summer routes, while Lufthansa Group announced a cut of 20,000 short-haul flights through October. Air Canada also confirmed a temporary halt in its flights to New York’s John F. Kennedy International Airport from June until late October.

Additionally, airlines such as United Airlines, Delta Air Lines, Air France-KLM, Philippine Airlines, and Cathay Pacific are responding to rising fuel costs by reducing flight schedules or pausing plans for new routes.

Experts in the industry warn that if current fuel rates persist, airlines may be forced to continue increasing fares and cutting back on capacity, which could have consequences for both carriers and passengers in the future.

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