US Airline Fuel Costs Jump 78% in April as Middle East Tensions Drive Prices Higher

U.S. airline fuel costs surged 78 percent year-over-year in April, reaching approximately $6.5 billion, according to a monthly report from the U.S. Department of Transportation. The figure represented a 26 percent increase from March, even as fuel consumption declined 2.6 percent compared to the previous month. The report attributed the cost escalation to sharp increases in fuel prices driven by the Iran conflict. Airlines have been forced to reroute flights to avoid closed or restricted airspace, a development that has increased fuel consumption and intensified capacity pressure across the industry. A low-cost U.S. carrier said high fuel prices had left it with no alternative but to adjust May operations. Delta, United, American, and Southwest together account for roughly 80 percent of U.S. domestic flights. The International Air Transport Association forecast the industry, represented by more than 370 airlines, will post a net profit of $23 billion in 2026, below its earlier projection of $41 billion and below the $45 billion profit recorded in 2025. Kayak platform data showed U.S. outbound ticket prices rose up to 31 percent for domestic routes and 22 percent for international routes compared to the same period last year. Supply disruption concerns pushed oil prices higher, with jet fuel costs climbing sharply and refinery profit margins widening.