Rising Jet Fuel Costs Impact U.S. Airlines
In May, U.S. airlines shelled out $6.66 billion on jet fuel, marking the second month in a row that expenses surpassed the $6 billion threshold, according to data released by the government.
This represents an 84% increase compared to the same month last year.
A month earlier, in April, airlines had spent $6.47 billion on fuel, as reported by the Bureau of Transportation Statistics.
It seems that the rise in spending is largely due to climbing jet fuel prices, rather than a notable increase in the amount of fuel consumed by airlines.
In May, U.S. airlines used about 1.627 billion gallons of fuel, which is actually a slight decline of 0.6% compared to May 2025. Consumption also dipped in April, following a similar trend.
The average price for fuel paid by the airlines in May was $4.09 per gallon. This is a small reduction from $4.11 in April, yet it remains 85% higher than the $2.21 per gallon from the previous May.
To cope with escalating fuel prices, airlines worldwide are adjusting by increasing fares and fees, and they are also scaling back flight schedules.
Fuel costs are crucial for the airline industry—they’re usually one of the largest operational expenses. Therefore, any fluctuations in energy prices can cause significant challenges.
The ongoing conflict in the Middle East has affected energy costs, particularly disrupting shipping routes like the Strait of Hormuz, an important corridor for global oil supplies.
While fuel prices have slightly decreased from earlier highs this spring—thanks in part to a temporary ceasefire between the U.S. and Iran—this situation remains quite delicate. Recently, three tankers were reported hit in the Strait, and the U.S. has rescinded some permits related to Iranian oil sales.
Delta Air Lines is expected to reveal its second-quarter results soon, along with other U.S. airlines. This will likely initiate discussions around how the recent dip in fuel prices might influence the industry’s economic outlook.
As of Tuesday, the average price of jet fuel at major U.S. hubs in cities like Chicago, Houston, Los Angeles, and New York registered at $2.88 per gallon. Prices fell below $3 per gallon mid-June for the first time since early March and have stayed there since.
