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Fuel costs for US airlines jumped to $6.5 billion in April

The 'Middle East conflict' is driving up jet fuel costs, according to the?U.S. Transportation Department announced Monday.

USDOT's monthly report stated that fuel costs for airlines were up by 26% compared to March. Carriers also used 2.6% less gasoline in April than they did in March.

Fuel prices in April were $4.11 per gallon, an increase of $1.81 compared to April 2025. This trend has already affected the industry. Spirit Airlines, a low-cost U.S. airline, shut down in May because of rising fuel prices.

Delta Air Lines is the largest domestic airline in the United States, followed by United Airlines, American Airlines, and Southwest Airlines.

In its annual report, the International Air Transport Association (IATA), which represents over 370 airlines and 85% of all global air traffic, stated that they expect to see a combined profit of $23billion in 2026. This is well below their previous forecast of $41billion, but up from $45billion in 2025.

According to KAYAK data, the average fares of flights from the U.S. have increased by up to 31% this year for domestic trips, and 22% for those abroad, compared with 2025.

Airspace restrictions and U.S.-Israeli airstrikes against Iran have triggered a Middle East conflict that has forced airlines to reroute their flights, increasing fuel consumption and straining the already limited capacity.

Fears of supply disruptions have caused oil prices to surge, driving jet fuel prices higher and increasing refinery margins. Airlines are now facing a sharp increase in their largest cost.

IATA predicts that airlines' fuel costs will rise to $350 billion by this year, up from $252 billion last year. Fuel accounts for almost a third in operating costs. (Reporting and editing by Mark Porter, David Holmes, and David Shepardson)

(source: Reuters)