AAL and peers face soaring jet fuel expenses, with Q1 costs rising $1.2 billion collectively amid geopolitical tensions.
American Airlines reported a $341 million increase in Q1 jet fuel costs compared to the same period last year. The surge, driven by the Middle East conflict, pushed fuel prices to $4.69 per gallon, more than double early February levels.
The six largest U.S. airlines saw combined fuel expenses rise by $1.2 billion in Q1. United Airlines, Delta, Alaska Air, Southwest, and JetBlue faced additional costs of $340 million, $196 million, $115 million, $107 million, and $62 million, respectively. The impact is expected to worsen in Q2 as the conflict’s full effects materialize.
AAL stock has declined 14% in 2026, reflecting broader industry pressure from rising fuel costs. The airline still posted record revenue and 10.8% YoY growth in the March quarter, but margins remain under strain.