US airlines spent $5.06 billion on jet fuel in March 2026, a 56% jump from February and $1.16 billion more than the same month last year. The surge came as jet fuel prices hit $3.13 per gallon, up 31% month-over-month, driven by the US-Israel-Iran conflict that disrupted global oil supplies and shut the Strait of Hormuz.
Why fuel costs shot up
Jet fuel prices have risen 84% since the conflict began. The Strait of Hormuz, a chokepoint for roughly a fifth of the world's oil, closed as hostilities escalated, cutting off a key supply route. With no quick resolution in sight, airlines are facing their steepest fuel cost increases in years.
How carriers are scrambling
Major carriers — including Lufthansa, Delta, United, and American — have slashed routes, trimmed services, and revised their 2026 financial outlooks. The most dramatic move came from Spirit Airlines, which suspended all operations on May 2, 2026, directly citing sharp oil price increases and business pressures. Jet fuel typically accounts for 25-30% of an airline's total operating costs, according to the International Air Transport Association.
What passengers will feel
Airfares have already climbed 9% in the past week alone. Airlines project that customers will absorb the higher fuel costs by the end of 2026 or early 2027. That means ticket prices are likely to keep rising as carriers try to recoup the billions in extra fuel spending.
The unresolved pressure point
Spirit's sudden shutdown on May 2 underscores how fast the conflict is reshaping the industry. With the Strait of Hormuz still closed and no ceasefire in place, fuel costs could climb further. Airlines are betting passengers will pay more — but whether demand holds up at those higher prices remains an open question.
