CNBC US Markets4/28/2026BusinessUnited States
Jet Fuel Price Surge Tests Airline Profitability as Travelers Keep Flying
U.S. carriers trim capacity, raise fares to offset $6 billion in added costs from Iran war; resilient bookings signal demand strength
Quick Look
- 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.
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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.
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This article was originally published by CNBC US Markets.
