Turbulence Ahead? Aircraft Operators Spent 56% More On Jet Fuel Since Onset Of Iran War

• U.S. airlines spent 56.4% more on jet fuel in March than they did in February
• U.S. carriers spent $5.06 billion on fuel in March, 30% higher year-on-year. 
• However, airline ticket booking trends are robust. 

U.S. airlines spent 56.4% more on jet fuel in March 2026, a month after the U.S.-Israel strikes on Iran began, U.S. government data released on Wednesday showed.

U.S. carriers spent $5.06 billion on fuel in March, up from $3.23 billion in February. It was 30% more than what they paid in March 2025, according to the Department of Transportation. 

Popular airlines have raised concerns over the rising costs. The S&P500 Passenger Airlines Index has shown significant recovery, gaining 50.39% over the past 12 months, yet faced a year-to-date decline of 8.87%.

Top U.S. aircraft operators like American Airlines and United Airlines have seen their stock drop 16% and 11%, respectively, year-to-date. Southwest Airlines and Delta Airlines eked out minor gains of 0.4% and 4% so far this year, owing to rising cost pressures. 

Major U.S. airlines have lowered or scrapped their 2026 forecasts altogether because of uncertainty about the trajectory of crude oil prices, which is their biggest expense after labor. Delta Airlines went a step further, scaling back its flight plans to cut costs.

According to the Bureau of Transportation Statistics, airlines used 1.615 billion gallons of fuel in March, 19.5% more fuel than in February 2026 and 0.4% more fuel than in March 2025. The cost per gallon of fuel in March 2026 was $3.13, up $0.74 or 31% from February 2026. 

Spirit Airlines, which collapsed last week, said the surge in jet fuel costs foiled its plans to emerge from bankruptcy. 

However, air ticketing sales seem to be on a robust trajectory.

Booking trends showed that in March, travel agency ticket sales rose 12% from a year ago to $10.4 billion, with the number of domestic trips up 5% and international up 1%, according to the Airlines Reporting Corp. 

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