U.S. lawmakers examine higher aviation fuel costs for fiscal 2027 defense bill

U.S. lawmakers are examining how higher fuel prices tied to the Iran war will affect military aviation costs in the fiscal 2027 defense budget request. A committee member stated that the president's budget request did not include costs related to the Iran war because it had been prepared before the conflict began.

budget assumptions Air Force Chief of Staff Gen.

Kenneth Wilsbach said the service accounted for increased flying-hour costs in its request and estimated those costs before market prices were known. The budget request funds 1.1 million flying hours at a total of $9.9 billion for the flying-hour program.

Wilsbach noted that the Air Force maintains long-term fuel contracts and storage reserves, so actual per-gallon costs will be determined once reserves are depleted. He added that the service assumed a 10 percent increase in flying-hour costs from the prior year.

Commercial and public impact A committee member reported that aviation fuel costs have risen roughly 50 percent since the war began on Feb. 28. U.S. airlines have seen fuel costs increase 56.4 percent, or $3.23 billion, since February, according to the Bureau of Transportation.

Secretary of the Air Force Troy Meink said the need for any supplemental funding depends on how long elevated costs persist. The committee member also cited an estimate that the American public will have paid over $193 billion in excess fuel costs by the end of 2026.