Iran war spikes fuel costs, hits US airline industry

A report released Friday by the U.S. Bureau of Transportation Statistics (BTS) revealed how the financial impact on the U.S. airline industry following the war in Iran continues to worsen as fuel prices remain high, detailing that U.S. airlines spent nearly $6.5 billion on fuel during April, up more than 26% compared to March and a 78% increase over the same month last year.

The report shows that the average price of jet fuel reached $4.11 per gallon in April, up 94 cents from the previous month and $1.81 compared to April 2025. Also, a report released Sunday by the International Air Transport Association (IATA) projected that airlines worldwide will earn a combined net profit of approximately $23 billion this year, down sharply from the organization's previous forecast.

The reports were released shortly after American Airlines joined the list of airlines cutting flights in the face of sharply rising jet fuel prices, driven by the war in Iran and the closure of the Strait of Hormuz. The carrier announced it will temporarily suspend six routes during August and September, with numerous analysts explaining that the changes are in direct response to the rising cost of Jet A, which accounts for 25% to 30% of airlines' total operating costs.

A spokesman for American Airlines, quoted by CBS News, assured that "American Airlines is not suspending any routes indefinitely as part of this adjustment." The airline assured that it will contact affected passengers to re-accommodate them on other flights or offer full refunds.

Far from solely and exclusively American Airlines being the affected carrier, CBS noted that Delta Airlines also recently raised baggage fees, citing "changing global conditions." In Europe, KLM and Lufthansa have announced similar cuts.