A global jet fuel shortage is driving up the cost of air travel

American airlines that have been smarting from airport security lines are about to be shocked again.

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A global jet fuel shortage is expected to drive up air travel costs and reduce flight times, as airlines look to cut rising prices.

On Monday, JetBlue announced it was raising baggage fees, citing “increasing operating costs.”

“While we recognize that rate hikes are never ideal, we are thinking carefully to ensure that these changes are implemented when necessary,” the retailer said.

United Airlines CEO Scott Kirby says the cost to passengers is already increasing. Data from airline information group OAG shows that airfares last week hit $465, the highest price for the same period since at least 2019.

“We have to raise prices to deal with higher fuel prices,” Kirby admitted at a company event last week in Los Angeles. In a follow-up report, he added: “It will be a challenge to continue to overcome the extent of high fuel prices if oil remains high for a long time.”

FORBROTHERS

The rising prices are the latest example of the economic fallout since the war with Iran. Analysts have begun to warn that the full charges have begun to be recorded when the world economy takes into account the loss of imported energy in the region due to the closure of the Strait of Hormuz and the damage to some of the main power stations in the region. On Tuesday, US gasoline prices hit $4 a gallon for the first time since 2022 amid rising oil prices. Meanwhile, major stock indexes have fallen by about 10% since the war began.

In the case of air travel, the industry is facing jet fuel prices that have risen 85% in the US since the day before the war began in March, according to data from Argus published by the industry group Airlines for America. On Monday, they reached a record $4.62 a gallon.

Most US carriers are no longer fuel efficient, said Henry Harteveldt, president of the Atmosphere Research Group. So they are forced to pass on some of the costs to the passengers.

While US carriers continue to supply jet fuel domestically, countries in Asia and Europe that rely heavily on Middle Eastern supplies have begun to take unprecedented measures to conserve jet fuel. In South Korea, shippers have asked the government to help transport fuel to be exported to local markets.

The Financial Times reported on Monday that the UK is also facing severe shortages, with no British-bound cargo in sight as the Strait of Hormuz transit remains closed. Some foreign carriers have begun charging fuel surcharges of up to $150.

As overseas carriers begin to look for alternative supply services, the prices of global commodities such as jet fuel are rising across the board.

“It shocks the whole machine,” said Jaime Brito, managing director at the Oil Price Information Service consultancy.

President Donald Trump spoke about jet fuel shortages Tuesday morning, though he did not comment on their impact on US travelers.

“All the countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to intervene in the fall of Iran, I have a proposal for you: Number 1, buy from the US, we have a lot, and Number 2, build ​​a slow evil, go to the Strait, and the UE TSEE,” he wrote on Truth Social.

Airlines are also showing signs of reduced capacity to cope with rising costs. United will drop about 5% of its frequently scheduled flights during “off-peak times” — such as red-eye and weekday routes — in the second and third quarters of 2026 to cut costs.

“We’re certainly going to work hard on the ability to make sure that supply and demand are always equal,” American Airlines CEO Robert Isom said at a JPMorgan conference earlier this month.

Kyle Potter, editor-in-chief of Thrifty Traveler, says many carriers have been quietly raising flights since the Iran war began. He said that airlines usually travel in bulk when making pricing decisions, so it is possible that other carriers will soon start raising baggage fees or look for other types of additional income. Potter noted that unlike airline fees, earnings from these fees are not subject to federal income tax.

As a result, fares — unlike airlines — are unlikely to rebound assuming jet fuel prices recover.

Representatives for the other five major US carriers did not respond to a request for comment.

The sharp increase in fuel prices comes as demand for air travel remains steady, with January and February ticket sales at or near records. While investors have dropped airline stocks by 25% since the start of the Iran war, Kirby said buyers appear willing to book because of healthy demand even if airfares rise.

“The number of affluent Americans who travel is bigger and wealthier than ever, and that’s what the airline industry depends on now,” Potter said. “And that means they don’t have high rates, high fees and bad travel coverage.”