Jet fuel costs skyrocket amid Iran war, exacerbating crisis for airlines, travelers

An international jet fuel shortage is driving up airfares and triggering thousands of flight cancellations as airlines grapple with rising costs.

Analysts warn the crisis could deepen in the coming weeks, with the war in Iran showing little sign of easing and jet fuel prices continuing to climb.

Since before the war began, the price of jet fuel in the U.S. has surged by 95 percent — from $2.50 per gallon on Feb. 27 to $4.88 on April 2, according to the Argus U.S. Jet Fuel Index, published by Airlines for America. That puts the price per barrel at nearly $205.

Airlines have already begun taking steps to offset higher costs, reducing flight schedules and quietly raising fares.

United Airlines last month became the first major U.S. carrier to scale back its schedule. CEO Scott Kirby said the airline would start “tactically pruning flying that’s temporarily unprofitable in the face of high oil prices” by cutting approximately 5 percent of planned routes during the second and third quarters of 2026.

Three percentage points of those cuts will come from “off-peak periods,” including midweek and red-eye flights, while 1 percentage point will come from reduced service at Chicago O’Hare International Airport as part of decongestion efforts already underway with the Federal Aviation Administration. The final 1 percentage point will come from canceled service to Israel and Dubai.

“The reality is, jet fuel prices have more than doubled in the last three weeks. If prices stayed at this level, it would mean an extra $11B in annual expense just for jet fuel. For perspective, in United’s best year ever, we made less than $5B,” Kirby wrote in a memo to employees on March 20. 

The airline’s chief noted that........

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