U.S. Airlines Report $6.5 Billion Fuel Costs in April; Global Profit Forecast Reduced

U.S. airlines reported spending over $6 billion on jet fuel in April 2026, an increase of 78% compared to the same month last year, despite a slight decrease in fuel consumption. The Bureau of Transportation Statistics indicated that fuel usage totaled 1.573 billion gallons in April, down from 1.575 billion gallons in April 2025. The International Air Transport Association (IATA) has adjusted its profit forecast for the airline industry, predicting a combined net profit of $23 billion in 2026, a significant reduction from its earlier estimate of $41 billion and down from $45 billion in 2025. This adjustment is attributed to rising energy costs, exacerbated by ongoing geopolitical tensions in the Middle East, which have disrupted shipping traffic through the Strait of Hormuz, a key oil transit route. In response to increased fuel prices, airlines globally have raised fares, cut services, and canceled flights. The average price of jet fuel in the U.S. reached $4.11 per gallon in April, compared to $2.31 in April 2025. Airlines such as American Airlines, Lufthansa Group, and Air Canada have announced route suspensions and flight reductions as a result of these challenges.