U.S. airlines spent $6.5 billion on airplane fuel in April 2026, a significant increase from the $3.23 billion reported in February and $5.06 billion in March, according to the Department of Transportation. The International Air Transport Association (IATA) has revised its industry profit projections, estimating a combined net profit of $23 billion for airlines in 2026, down from a previous forecast of $41 billion. In 2025, airlines reported a net profit of $45 billion.
Willie Walsh, director general of IATA, stated, "Airlines are bearing the brunt of the fuel price shock. While airfares are rising, airlines are still absorbing part of the hike in their bottom lines." The price per gallon for aviation fuel increased from $2.39 in February to $3.13 in March and reached $4.11 in April.
The rise in fuel costs has been attributed to a global energy shock linked to the blockade of the Strait of Hormuz, a critical route for global oil exports. The increased fuel costs have severely impacted budget airlines, with Spirit Airlines citing the rise as the primary reason for its closure. Other budget airlines may also face challenges due to their smaller profit margins, while established airlines like Lufthansa, American Airlines, and Air Canada have implemented route cuts and cost-saving measures in response to the higher prices.
