Jet Fuel Prices Rise 95% Since U.S.-Israel Strikes on Iran, Prompting Airline Fare and Fee Increases

S. and Israel first struck Iran, leading airlines to increase airfares, fuel surcharges, and baggage fees to offset higher costs. 88 per gallon in New York, Houston, Chicago, and Los Angeles on April 2, marking an approximate 95% increase since the strikes began.

U.S. carriers including Delta Air Lines, United Airlines, Southwest Airlines, JetBlue Airways, American Airlines, and Alaska Airlines have all raised baggage fees since February 28. Airlines worldwide have also posted higher airfares and surcharges during this period.

Delta Air Lines reported a $2 billion headwind from fuel costs in the first quarter of 2026 and announced plans to meaningfully scale back its capacity. Delta CEO Ed Bastian stated last week that fuel recapture will be important for boosting margins this year and into next year.

He also noted that demand has held up, particularly among premium consumers who remain less affected by recent headlines.

U.S. , wrote to the CEOs of Delta, United, JetBlue, and Southwest urging them to lower fares if jet fuel prices decline. , contributing to the overall rise in airline operating expenses. The combination of geopolitical events and fuel price volatility continues to shape airline pricing strategies and capacity planning in 2026.