U.S. airlines spent $6.5 billion on airplane fuel in April, another sign of the economic damage wrought by the U.S.-Israeli war with Iran.
The total is over double what airlines reported paying back in February. The Department of Transportation reported that airlines collectively paid $3.23 billion in February, while in March they paid $5.06 billion. The newest fuel costs came from the International Air Transport Association, causing it to revise its industry projections.
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The organization now estimates airlines will make a combined net profit of $23 billion in 2026, down from its previous forecast of $41 billion. Airlines collectively made $45 billion in net profit in 2025.
“Airlines are bearing the brunt of the fuel price shock,” Willie Walsh, director general of IATA, said in a statement. “While airfares are rising, airlines are still absorbing part of the hike in their bottom lines.”
The price per gallon for aviation fuel rose from $2.39 in February to $3.13 in March and $4.11 in April.
Airlines have struggled to cope with the increased fuel costs, triggered by a global energy shock driven by the blockade of the Strait of Hormuz, through which nearly one-fourth of global oil exports flow.
DOT SAYS AIRLINES PAID 56% MORE FOR FUEL IN MARCH THAN BEFORE IRAN WAR
The sharp rise in aviation fuel costs was the death blow to Spirit Airlines, which cited the increase as the main cause for its closure.
Other budget airlines could be put in jeopardy by the rise, with their smaller profit margins giving them less flexibility for dealing with a crisis. Established airlines, such as Lufthansa, American Airlines, and Air Canada, have all had to cut routes and carry out other cost-saving measures to cope with higher prices.
