Oil price surge deepens airline crisis
Major US passenger airlines spent more than $5 billion on jet fuel in March, marking a sharp 56% increase from February, according to data released Wednesday by the US Transportation Department.
The average cost of jet fuel climbed to $3.13 per gallon in March, up 31% from the previous month, while fuel consumption increased by 20%.
The spike in prices follows growing instability in global oil markets after the conflict between Israel and Iran disrupted shipping through the Strait of Hormuz. Analysts say rising fuel costs have triggered the airline industry’s most severe financial pressure since the COVID-19 pandemic.
Airlines spent $3.88 billion on jet fuel in March 2025, significantly below the $5.06 billion recorded this March.
To offset rising expenses, major US carriers have raised ticket prices and baggage fees, reduced routes and introduced broader cost-cutting measures. Fuel can account for as much as 25% of an airline’s operating costs.
Ultra-low-cost carrier Spirit Airlines, which halted operations on Saturday, said it incurred an additional $100 million in fuel expenses during March and April. The airline blamed the surge in oil prices for the collapse of its restructuring efforts and its eventual shutdown.
“Every airline is suffering from high oil prices,” Southwest Airlines CEO Bob Jordan told Reuters last week, adding that airlines must build resilient business models to withstand such shocks.
Last month, several low-cost carriers requested a $2.5 billion government bailout to help cover higher fuel costs. However, Transportation Secretary Sean Duffy said federal assistance was not necessary “at this point.”
