All articles tagged with #jet fuel
Southwest shipped about 12.6 million gallons of jet fuel from Houston to Los Angeles via the Panama Canal this spring to ease a West Coast supply crunch as jet-fuel prices surged, aided by a Jones Act waiver; the move reflects volatile costs squeezing airline earnings and contributing to higher fares and slower capacity growth across the industry.
Ryanair posted Q1 profit after tax of €538m, down from €820m a year earlier, as passenger demand cooled amid the Middle East crisis, fares fell about 6%, and 20% of its fuel remained unhedged while costs rose 11% to €3.81bn; shares slid roughly 5.6% after the open. The airline says its conservative hedging policy shields it from oil volatility, but it issued cautious rest-of-year guidance with little visibility for H2 or FY27, noting jet-fuel prices remain a key risk for European carriers.
United Airlines beat Q2 estimates with adjusted EPS of $1.99 on revenue of $17.67B, but jet-fuel costs surged 84% year over year to $2.3B, potentially adding about $6B to annual expenses. The company raised full-year adjusted EPS guidance to $9–$11, but Q3 guidance of $2.50–$3.50 missed consensus, and United signaled possible capacity cuts if fuel volatility persists.
Jet-fuel costs have fallen sharply, but Delta says cheaper airfares aren’t on the horizon as demand remains strong and fares stay elevated. In its latest quarterly results, Delta offset higher fuel expenses with robust passenger revenue, and it now expects fuel costs to be about 20% lower in the current quarter as oil retreats, though airfares remain above pre-pandemic levels due to continued strong demand and premium travel.
The UK will phase out imports of Russian diesel and jet fuel by the new year as part of intensified sanctions to pressure Moscow, with officials saying the measures will stop refined oil made from Russian crude from entering the UK via third countries. The move comes as Brent crude rises toward $87 amid Middle East tensions and a potential deal to end the conflict, while critics like Bill Browder argue the policy could finance Russia’s war machine.
US CPI data show airfare up 30% in five months (26.7% year over year), driven by higher jet-fuel costs linked to the Iran conflict and seasonal demand. Airlines have been raising fares to offset fuel costs, and with much of the industry signaling fares will stay elevated even if oil prices ease, the premium travel segment is driving most of the increase.
IATA warns airlines will face an extra $100bn jet-fuel bill in 2026 as prices could rise up to 70%, forcing higher fares and cutting industry profits to about $23bn; long-haul and premium travel may bear most of the increases, with some carriers at risk, while Europe’s biometric border checks (EES) could cause delays, though Greece has opted out for UK travellers.
Aviation leaders converge on Rio for the IATA annual meeting amid persistent jet-fuel price spikes, hedging questions for carriers, and signs of potential consolidation and regional shifts as demand gradually recovers post-pandemic.
American Airlines will temporarily suspend six routes in August–September due to rising jet fuel costs tied to the Iran conflict; the affected routes are LA to Cleveland, Columbus, Pittsburgh, and Washington Dulles, plus Charlotte to Ontario and Sacramento. The cuts are temporary and passengers can be rebooked or refunded.
Airfares hit their highest level in nearly four years as jet-fuel costs surged (fuel is a major airline expense and is being passed to travelers), even with demand remaining strong for the summer. Gas prices are above $4 a gallon, and potential supply pressures could keep fares elevated. Spirit Airlines’ collapse removed a low-fare option, prompting capacity adjustments across carriers. TSA expects heavy travel around Memorial Day, while AAA notes roads won’t offer bargains; travelers can save by flexible dates, using tools like Google Flights Explorer, and redeeming miles or points.
UK Prime Minister Keir Starmer faces cross-party criticism after ministers quietly issued a sanctions licence allowing jet fuel and diesel refined from Russian crude to continue importing, effectively easing the ban; government says the exemptions are temporary and will be suspended soon, while opponents warn the move undermines sanctions and signals weakness to Moscow.
EU Transport Commissioner says jet-fuel shortages do not qualify as extraordinary circumstances under EU passenger rights rules, so airlines must reimburse passengers for trips cancelled this summer; while some carriers have hedged fuel to limit disruption, others like Lufthansa and Aer Lingus have canceled flights; the UK remains under EU rules post-Brexit; amid the fuel crisis, AirAsia announced a $19 billion deal to buy 150 Airbus A220 jets, with potential expansion to 300, boosting Belfast wing production jobs.
JPMorgan’s energy team argues a bigger problem than elevated crude prices is tightening refined-product markets: refiners cutting runs in Asia and Europe, plus reduced Middle East gasoline exports, are pushing gasoline supply tighter while jet-fuel yields rise. The result is narrowing balances and higher pump prices, with US gasoline around $4.56/gal and the risk of $5/gal looming ahead of the summer driving season.
European airlines may use US-made Jet A or Jet A-1 to ease possible shortages as Gulf supplies fall due to the Middle East conflict; IATA is urging broader acceptance of US-grade Jet A-1, while EASA has issued safety guidance noting Jet A could be introduced in Europe with proper management, though risks include grade mixing and inconsistent availability. US refineries’ capacity to produce Jet A-1 is a limiting factor, but increases in US shipments are helping; industry groups like IAG say there are no current shortages but warn the situation could worsen if the conflict continues.
Surging jet fuel prices are squeezing airline costs this summer, raising the risk of flight cancellations, reduced capacity, or higher fares. Industry analysts say tighter fuel supply and strong demand are driving costs up, which could prompt airlines to trim schedules or adjust routes. Travelers should stay alert to airline notices, be flexible with travel dates, and consider early bookings as prices trend higher.