U.S. Airlines Absorb 78% Fuel Spike Without Aid; Pass Costs Through Competitive Market as Demand Stays Elevated

U.S. airlines recorded a 78 percent jump in aviation fuel costs to nearly $6.5 billion in April 2026 compared with the same month last year, according to Bureau of Transport Statistics data. The increase followed repeated disruptions in the Strait of Hormuz, which carries about one-fifth of global oil output, during the recent Iran conflict.

Carriers responded by suspending less profitable routes and raising ticket prices. American Airlines announced it would temporarily suspend six domestic routes from August through October. A spokesperson for the airline said passengers on affected routes would receive alternate arrangements or refunds under its schedule-change policy.

Average domestic fares rose about 15 percent, from $333 to $384, between mid-February and mid-May, according to Kayak search data. Some carriers added fuel surcharges and increased checked-bag fees. American Airlines adjusted its bag-fee structure in April, citing the operating environment.

Budget carrier Spirit Airlines ceased operations in May after failing to offset higher costs. Despite elevated fares, consumer demand stayed high. The Transport Security Administration expects 18.7 million passengers at security checkpoints between June 30 and July 6 for the July 4 holiday period.

United Airlines reported a $340 million rise in fuel expense in its first-quarter results compared with the first quarter of 2025. Analysts note that even with gradual reopening of the waterway, insurance markets and damaged infrastructure may take weeks or months to stabilize.