U.S. airlines face soaring jet fuel costs as prices stay elevated
Airlines spent $6.659 billion on fuel in May, 83.9% more than a year earlier, even as they burned slightly less fuel.
U.S. airlines spent $6.659 billion on fuel in May, the second straight month their fuel bill topped $6 billion. That was up 83.9% from May 2025, even though airlines used 1.626843292 billion gallons, down 0.6% from a year earlier.
The average price airlines paid was $4.09 a gallon in May, up from $2.21 in May 2025 and only slightly below April’s $4.11. Total spending rose 3.0% from April’s $6.47 billion even as the price eased a bit, because airlines burned 3.5% more fuel than in April. BTS data covered 99.9% of total consumption reported by major, national and large regional carriers, and Alaska Airlines and Hawaiian Airlines now report combined fuel data under Alaska Airlines after their merger.
Fuel is one of the industry’s biggest operating costs, and jet fuel can account for 25% to 30% of airline operating expenses, according to the International Air Transport Association. That leaves airlines with three basic choices when costs stay elevated: absorb the hit to margins, push more of it into fares and fees, or cut flying in weaker markets. BTS’ most recent fare data, for the first quarter of 2026, showed average airfares up 4.7% from the fourth quarter of 2025, a sign that some of the cost pressure is already reaching passengers.
The broader fuel market remains tied to conflict in the Middle East and the flow of crude and refined products through the Strait of Hormuz, where roughly one-fifth of global seaborne jet fuel trade moves, according to IATA. In June, the International Air Transport Association said war-related disruptions and high fuel prices were halving airline industry profitability, and warned that continued disruption could keep strong upward pressure on fuel costs. Even after an interim ceasefire between the United States and Iran helped prices pull back from spring highs, fresh tanker attacks and renewed military strikes have kept the market uneasy.
Delta Air Lines is set to report second-quarter results and hold its earnings webcast on July 10.
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