May. 7 at 1:17 AM
US airlines saw a sharp surge in jet fuel costs in March, driven by rising global oil prices and supply disruptions.
The U.S. Department of Transportation reported that major passenger airlines spent just over
$5B on jet fuel in March, up
$1.8B (56%) from February. The average price rose to
$3.13 per gallon, a 31% increase, while fuel consumption also climbed 20%.
Officials linked the spike partly to geopolitical tensions affecting shipping routes, including disruptions near the Strait of Hormuz, which have added pressure to global oil markets. The increase is being described as one of the industry’s toughest cost shocks since the COVID-19 pandemic.
Fuel now accounts for up to a quarter of airline operating expenses, prompting carriers to raise fares, cut routes, and reduce costs. Spirit Airlines said it absorbed about
$100M in extra fuel costs across March and April, contributing to its failed restructuring and shutdown.
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