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First modification: 04/24/2026 - 03:54 Last modification: 04/29/2026 - 23:22
American Airlines acknowledged in its most recent financial report that its profits this year will be seriously impacted by an unusual increase in jet fuel prices. This and other industry players have already adopted or announced measures to mitigate the effect, which mostly affect the end user.
“The problem with jet fuel right now is twofold.” Anita Mendiratta, global aviation and tourism advisor, explained in an interview with the Reuters agency that the war in the Middle East has not only skyrocketed oil prices: it has also drastically reduced refining capacity.
"Normally, most of the world's jet fuel passes through that region (...). Crude oil arrives through the Strait of Hormuz, but needs to be refined in the Middle East and then sent to international airports. This has been seriously affected by the conflict," he added.
The start of the conflict at the end of February catapulted the prices of jet fuel - known as Jet A-1 -, which even doubled from $100 per barrel in recent weeks. The reason: around 20% of the crude oil that the world consumes daily passes through the Strait of Hormuz, blocked by Iran.
This is a severe financial blow to an industry where fuel accounts for up to a quarter of operating expenses and where tickets are often sold in advance at prices that can no longer be adjusted.
Read alsoWar in Iran: 3,000 dead, global oil crisis and growing tensions
A blow that begins in the Strait of Hormuz and ends in the pockets of travelers
As the season for presenting first quarter results progresses, companies in the sector have begun to reflect this impact in their financial books, forcing them to make decisions in the face of a usually busy holiday season.
American Airlines, the world's largest airline, reduced its profit forecast for this year to a range so low that it borders on a loss and estimated that it will have to spend about $4 billion more on fuel this year.
The American company announced an increase of ten dollars in fees for checked baggage for the first and second suitcase and of 150 dollars for the third, on domestic and short-haul international flights.
Delta Air Lines and Southwest Airlines did the same, with fare adjustments on additional services that are complemented by the reduction of some benefits for economy class passengers.
History is repeating itself around the world: the German airline group Lufthansa announced the cancellation of 20,000 short-haul flights until October and will ground 27 aircraft that provided service to its short-haul subsidiary CityLine.
Air Canada, Canada's largest airline, plans to reduce four of its 38 daily flights to New York between June 1 and October 25, 2026. And the Air France airline group warned that it will increase long-distance ticket prices by 50 euros per round trip. But those are just a few examples.
Read alsoIsrael and Lebanon extend the truce for three weeks; Tension in Hormuz soars under Trump's threat
With Reuters, AFP and AP
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