Rising geopolitical risks in the Middle East drove US airline fuel costs to over $5 billion last month.
US airlines spent more than $5 billion on jet fuel in March, as escalating tensions with Iran pushed oil prices higher. The surge in fuel costs reflects broader market concerns over supply disruptions in key oil-producing regions.
Fuel expenses typically account for 20-30% of airline operating costs, and March’s figure marks a sharp increase from February’s $4.2 billion. Analysts had expected a rise but not at this magnitude, citing unexpected geopolitical volatility.
Shares of major carriers dipped in early trading as investors weighed the impact of sustained high fuel prices on profitability.