American airlines faced a massive fuel bill of more than $6 billion in April, marking a 78% increase from the previous year even though they consumed roughly the same amount of fuel, according to government data released Monday. At the same time, the aviation industry’s leading global trade organization cautioned that rising energy costs could slash worldwide airline profits nearly in half by 2026.
The disruption began when Middle East tensions escalated earlier this year following strikes by the U.S. and Israel on Iran, effectively shutting down much of the shipping activity through the Strait of Hormuz — a vital oil transportation corridor that runs along Iran’s border. This disruption has driven up both crude oil and jet fuel prices significantly.
To manage these rising expenses, airlines worldwide have implemented higher ticket prices and additional fees, eliminated various customer benefits, and reduced flight schedules or canceled routes entirely.
Data from the Bureau of Transportation Statistics shows U.S. airlines paid approximately $6.5 billion for fuel in April, a dramatic increase from roughly $3.6 billion during the same month last year. Despite the higher costs, actual fuel usage dropped slightly to 1.573 billion gallons from 1.575 billion gallons in April of the previous year.
These numbers emerged alongside a Sunday report from the International Air Transport Association, which revised its profit projections for airlines globally. The organization now anticipates combined net earnings of $23 billion in 2026, significantly lower than its earlier prediction of $41 billion and down from $45 billion expected in 2025.
“Airlines are bearing the brunt of the fuel price shock,” said Willie Walsh, director general of IATA, which represents most of the world’s carriers. “While airfares are rising, airlines are still absorbing part of the hike in their bottom lines.”
The trade association projects jet fuel will cost an average of $152 per barrel in 2026, representing nearly a 70% increase from 2025 levels. This surge will push the worldwide airline fuel expense to approximately $350 billion, up from $252 billion the year before. The organization estimates fuel will represent more than 31% of airline operational costs in 2026, compared to roughly 25% last year.
Within the United States, jet fuel prices reached $4.11 per gallon in April, according to the Bureau of Transportation Statistics. The same month last year, the price was $2.31 per gallon.
Demonstrating the continuing impact of the regional conflict on travel, American Airlines announced last week it would suspend certain summer routes. Similarly, in April, the group said it would eliminate 20,000 short-distance flights through October, while Air Canada revealed it was halting service to New York’s airport from June until late October.
Additional airlines across different regions — including U.S. carriers and international airlines in Europe and Asia — have responded by reducing flights, modifying their schedules, or putting expansion plans on hold for this year.
