airline profitability

Jet Fuel Price Surge Tests Airline Profitability as Travelers Keep Flying

Jet fuel prices have surged following attacks on Iran that closed the Strait of Hormuz two months ago, adding over $6 billion to U.S. airline costs. Despite higher fares—domestic economy tickets up 21% to $570 and premium seats up 17% to $1,444—travelers continue booking trips with March ticket sales rising 12% to $10.4 billion. Carriers are trimming capacity to boost fares and expect customers to cover increased costs by year-end or early 2027, though budget airlines are seeking $2.5 billion in federal relief.