Jet Fuel Bill Skyrockets 56% for U.S. Airlines After Iran Strikes

The cost of keeping planes in the air has jumped dramatically for U.S. carriers. New federal data shows airlines spent $5.06 billion on jet fuel in March—a 56.4% increase from the $3.23 billion they paid in February. That spike came right after U.S.-Israel military operations against Iran began. Compared to March 2025, fuel costs were up 30%, according to the Department of Transportation.

Fuel is an airline’s second-biggest expense, trailing only payroll. The sudden surge has forced several carriers to scrap or cut their 2026 financial forecasts. Some are pulling back on expansion plans to avoid flooding routes with expensive seats. The situation worsened in April, when jet fuel topped $4 a gallon in certain markets as the conflict continued and the Strait of Hormuz was effectively shut down.

The impact was fatal for Spirit Airlines, which collapsed over the weekend. The budget carrier said the jump in fuel prices derailed its plan to exit bankruptcy by mid-year. Other major airlines told investors last month that they expect passengers to absorb the higher costs by the end of this year or early 2027.

So far, travelers haven’t slowed down. In March, travel agencies sold $10.4 billion in tickets—up 12% from a year ago. Domestic trips rose 5%, and international trips increased 1%, according to the Airlines Reporting Corp. For now, Americans are still booking flights, but the bill is climbing.