US airlines' fuel costs soared to $6.5 billion in April due to Hormuz closure
Fuel costs for U.S. airlines rose 78% in April to nearly $6.5 billion compared with a year earlier, as conflict in the Middle East drives up jet fuel prices, the U.S. Department of Transportation said.
Airline fuel costs rose 26% in March and carriers used 2.6% less fuel in April than in March, the USDOT said in a monthly report. The cost per gallon of fuel in April was $4.11, $1.81 more than in April 2025, the USDOT added, a trend that has already had an impact on the sector. Spirit Airlines, a U.S. ultra-low-cost carrier, suspended operations in May, saying rising fuel prices left it no choice. Delta Air Lines, United Airlines, American Airlines (AAL.O) and Southwest Airlines account for about 80% of domestic U.S. flights.
The International Air Transport Association, which represents more than 370 airlines accounting for about 85% of global air traffic, said in its annual report on Sunday that it expects the industry to post a combined net profit of $23 billion in 2026, well below a previous forecast of about $41 billion and down from $45 billion in 2025.
Average prices for flights originating from the US have increased this year by up to 31% for domestic travel and 22% for international travel, compared to the same weeks in 2025.
The conflict in the Middle East, sparked by US and Israeli air strikes on Iran, has also forced airlines to reroute flights around closed or restricted airspace, increasing fuel burn and straining already limited capacity.
Oil prices have risen sharply on fears of supply disruptions, pushing jet fuel prices significantly higher and stretching refinery margins, leaving airlines facing a significant increase in their overhead costs.
IATA expects airlines' fuel bills to rise to around $350 billion this year from approximately $252 billion in 2025, with fuel accounting for nearly a third of operating costs.
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