U.S. airlines face a $5 billion March fuel bill as jet fuel prices double, lifting domestic round-trip fares 21% year-on-year.
U.S. airlines spent $5 billion on fuel in March, a 30% increase from a year earlier, as jet fuel prices roughly doubled following the Iran conflict. The surge has pushed average domestic round-trip economy airfares up 21% to $570, pressuring carriers to cut routes and raise prices.
Government data shows the spike in fuel costs began weeks after the conflict escalated, with no immediate relief expected. Industry warnings suggest elevated fares will persist through summer and autumn, even if the Strait of Hormuz reopens.
The sustained price surge has already contributed to financial strain, including the collapse of Spirit Airlines, as carriers struggle to offset higher costs.