All articles tagged with #jet fuel
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.
Fortune reports that even as the Iran conflict appears to cool, Europe faces a looming jet-fuel shortage this summer, with Goldman Sachs warning that global oil supply could shrink to roughly 98 days of demand and inventories in several regions remain tight, potentially forcing travel restrictions and industry adjustments while the Strait of Hormuz blockade and wider geopolitical tensions persist.
Global airlines are cutting about 2 million seats this month—roughly 13,000 fewer May flights—as jet fuel prices jump amid Middle East tensions. Lufthansa and Turkish Airlines are among the biggest cutters, with some reductions via smaller aircraft. EasyJet and Wizz Air maintain schedules through hedging, while the UK weighs loosening slot rules and other contingency measures to curb disruption; analysts warn Europe could face jet fuel shortages if the conflict persists.
Global airlines have canceled about 13,000 May flights and trimmed nearly 2 million seats due to a jet-fuel shortage linked to the Iran conflict and Hormuz disruptions, prompting carriers to deploy smaller planes, raise fares, and risking disruption to half-term and upcoming summer travel.