U.S. airlines spent nearly $6.5 billion on fuel in April alone, a dramatic increase from approximately $3.6 billion during the same month in 2025, according to the Bureau of Transportation Statistics. The nearly doubling of fuel costs comes despite a slight decline in actual consumption — 1.573 billion gallons in April versus 1.575 billion gallons a year earlier — underscoring the impact of surging oil prices tied to the ongoing Middle East conflict.
The International Air Transport Association released a report on June 8 projecting that airlines globally will earn a combined $23 billion in net profit in 2026, a sharp decline from prior forecasts. IATA officials said jet fuel prices are expected to average $152 a barrel this year, boosting global airline fuel expenses to roughly $350 billion. Fuel is projected to account for over 31 percent of airline operating expenses in 2026.
In the U.S., the price for a gallon of jet fuel in April stood at $4.11, according to Bureau of Transportation Statistics data cited by the Associated Press. The spike is already showing up in higher fares and fees: domestic airfare is up roughly 19 percent compared with this time last year, with median round-trip flight prices climbing from $412 to $489, according to travel platform Going.com.
For Houston, a major airline hub city, the fuel cost surge has direct implications. United Airlines, which operates a significant hub at George Bush Intercontinental Airport, was among the first carriers to raise checked baggage fees. Southwest Airlines, headquartered in Dallas with major Houston operations, has followed suit.
American Airlines confirmed it is suspending select domestic routes in August and September due to elevated fuel costs, though it noted the suspensions are not indefinite. Lufthansa Group said it would slash 20,000 short-haul flights through October, and Air Canada announced it is suspending service to New York’s JFK from June through late October.
The industry restructuring extends beyond schedule adjustments. Spirit Airlines shut down after 34 years, with its collapse accelerated by the sharp rise in fuel costs and years of financial strain. Allegiant Air recently acquired Sun Country Airlines, consolidating the discount carrier segment.
Industry analysts say Houston’s position as a fuel-intensive hub city means the cost pressures will continue to weigh on airline operations, even as strong World Cup-related demand provides a partial offset this summer.
