Key insights
- US airlines spent significantly more on jet fuel in March due to rising prices, driven by geopolitical tensions impacting supply chains. This increase in operating costs could pressure airline profitability, potentially leading to higher ticket prices and reduced consumer spending, ultimately weighing on the broader market.
Investing.com -- Major U.S. airlines spent just over $5 billion on jet fuel in March, up 56% and $1.8 billion over the February costs, according to the U.S. Transportation Department.
The cost per gallon of fuel in March was $3.13, up 74 cents, and 31% over February. Fuel use rose 20% in March. Global carriers are contending with surging jet fuel prices since the U.S.-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz, in the air travel industry's worst crisis since the COVID-19 pandemic.