US Airlines Fuel Costs Rise 56% to $5.06B in March

U.S. airlines spent $5.06 billion on fuel in March, a 56 percent increase from $3.23 billion the previous month, according to the Department of Transportation's Bureau of Transportation Statistics. The spike, the first full month following the start of the Iran war, stemmed from higher jet fuel prices averaging $3.13 per gallon, up 30.9 percent from February, amid the closure of the Strait of Hormuz, a critical oil shipping route.

The conflict has disrupted global oil supplies for more than two months, driving up costs that airlines, for whom fuel ranks among the largest operating expenses, have begun passing on to passengers. Data from Kayak shows airfares surging about 25 percent, with industry executives reporting multiple broad fare increases and added fees during first-quarter earnings calls. Fewer flight options and schedule adjustments are also emerging as carriers grapple with elevated and potentially scarcer fuel supplies.

Budget airline Spirit Airlines ceased operations on May 3 after 34 years, canceling all flights and advising ticket holders not to visit airports. The carrier cited unstable debt, a failed merger with JetBlue terminated in March 2024 over antitrust...