Updated
Updated · The Associated Press · Jul 8
U.S. Airlines' May Jet Fuel Bill Hits $6.66 Billion as Prices Jump 85%
Updated
Updated · The Associated Press · Jul 8

U.S. Airlines' May Jet Fuel Bill Hits $6.66 Billion as Prices Jump 85%

3 articles · Updated · The Associated Press · Jul 8

Summary

  • $6.66 billion in May fuel spending marked the second straight month above $6 billion for U.S. airlines, after April's $6.47 billion.
  • $4.09 per gallon average jet fuel prices drove the surge, up 85% from $2.21 a year earlier, while consumption slipped 0.6% to 1.627 billion gallons.
  • Middle East conflict and disrupted Strait of Hormuz shipping pushed energy costs sharply higher this spring, prompting airlines globally to raise fares, add fees and trim schedules.
  • $2.88 per gallon at major U.S. hubs on Tuesday shows costs have eased since mid-June after a U.S.-Iran interim ceasefire, though tanker strikes and tighter U.S. curbs on Iranian oil keep the truce fragile.
  • Delta reports second-quarter results Friday, with investors expected to focus on whether the recent fuel-price pullback can ease pressure on airline finances.

Insights

Beyond hiking fees, what radical changes must airlines make to survive this new era of expensive fuel?
As the Iran conflict chokes oil supplies, will summer travel become an unaffordable luxury?
With the Strait of Hormuz closed, are we on the brink of a global energy and supply chain crisis?