New York, Jun 9 (AP) US airlines spent more than USD 6 billion on jet fuel in April, up 78 per cent from a year earlier despite using slightly less fuel, government data released Monday showed. Meanwhile, the airline industry's top global trade group warned that soaring energy costs could nearly halve profits in 2026.
Since conflict erupted in the West Asia earlier this year after the US and Israel launched strikes on Iran, much of the shipping traffic through the Strait of Hormuz -- a critical oil transit route bordering Iran -- has remained effectively halted, pushing up the price of oil and jet fuel.
In an effort to contain costs, airlines around the world have raised airfares and fees, cut other perks and cancelled flights or trimmed schedules.
US carriers spent nearly USD 6.5 billion on fuel in April, compared with about USD 3.6 billion a year earlier, according to the Bureau of Transportation Statistics. Fuel consumption in April totalled 1.573 billion gallons, down slightly from 1.575 billion gallons a year earlier.
The latest figures came as the International Air Transport Association released a report on Sunday saying it now expects airlines worldwide to earn a combined USD 23 billion in net profit in 2026, far below its previous forecast of USD 41 billion and down from USD 45 billion in 2025.
"Airlines are bearing the brunt of the fuel price shock," said Willie Walsh, director general of IATA, which represents most of the world's carriers. "While airfares are rising, airlines are still absorbing part of the hike in their bottom lines."
The group said jet fuel prices are expected to average USD 152 a barrel in 2026, nearly 70 per cent higher than in 2025, pushing the global airline fuel bill to about USD 350 billion from USD 252 billion a year earlier. IATA said fuel is forecast to account for more than 31 per cent of airline operating expenses in 2026, up from about 25 per cent last year.
In the US, the cost of a gallon of jet fuel in April was USD 4.11, the Bureau of Transportation Statistics said. Last April, it cost USD 2.31.
In a sign of the conflict's ongoing repercussions for travel, American Airlines said last week it was suspending some of its routes this summer. In April, Lufthansa Group said it would cut 20,000 short-haul flights through October and Air Canada announced it was suspending its service to New York's John F Kennedy International Airport from June until late October.
Other airlines, ranging from US carriers like United and Delta to Air France-KLM, Philippine Airlines and Cathay Pacific in Europe and Asia, have either cut flights, readjusted their schedules or halted plans to add more seats and routes this year. (AP) ARB
