U.S. airlines are facing mounting cost pressures after spending nearly $6.5 billion on jet fuel in April alone, as global aviation profits are projected to nearly halve amid surging energy prices and ongoing geopolitical tensions affecting oil supply routes.
The latest data from the Bureau of Transportation Statistics showed fuel expenses jumped 78 percent from about $3.6 billion a year earlier, even as total fuel consumption slightly declined to 1.573 billion gallons from 1.575 billion gallons. The sharp rise underscores how higher oil prices, rather than increased flying activity, are driving up costs across the aviation sector.
Fuel prices in the United States also surged, with the average cost per gallon of jet fuel rising to $4.11 in April from $2.31 a year earlier. The increase comes as global energy markets remain volatile following disruptions linked to conflicts in the Middle East, which have affected shipping activity and tightened supply expectations through key routes such as the Strait of Hormuz.
The cost spike is now feeding into broader industry concerns. The International Air Transport Association (IATA) has downgraded its global profit outlook for airlines, projecting combined net earnings of about $23 billion in 2026, significantly lower than its earlier forecast of $41 billion and below the $45 billion expected this year.
IATA said jet fuel is set to average $152 per barrel in 2026, nearly 70 percent higher than in 2025, pushing the global airline fuel bill to about $350 billion. Fuel is expected to account for more than 31 percent of total airline operating costs next year, up from around 25 percent previously.
Industry officials said airlines are already adjusting operations to manage rising expenses, with carriers raising fares, trimming routes, cutting schedules, and reducing onboard benefits to preserve margins.