US airline fuel costs surge 78% as Iran tensions threaten Strait of Hormuz, squeezing profits
By
Al Jazeera Staff
A baker's-dozen of insight crammed into one ring.
Summary
US airline profits are under severe pressure as jet fuel costs have surged 78% to nearly $6.5bn in April, driven by escalating US-Iran tensions threatening the Strait of Hormuz. The cost per gallon rose $1.81 year-over-year to $4.11. IATA forecasts a $350bn airline fuel bill for 2026, with profit margins dipping to their weakest since the COVID-19 pandemic, threatening the industry's post-pandemic recovery.
Key quotes
· 3 pulledFuel costs surged by 78 percent to nearly $6.5bn in April, following a 26 percent jump in March
The cost per gallon (3.78 litres) increased by $1.81 from this time last year to $4.11
IATA forecasts $350bn airline fuel bill for 2026, with profits dipping to their weakest margin since the COVID-19 years
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