US passenger airlines collectively spent over $5 billion on jet fuel in March, marking a substantial 56% increase, or $1.8 billion, compared to February’s expenditures, according to figures released by the US Transportation Department on Wednesday.
The cost per gallon of fuel reached $3.13 in March, an increase of 74 cents and 31% over the previous month. Fuel consumption also saw a 20% rise during March.
These surging costs are attributed to disruptions in global oil markets, particularly shipping through the Strait of Hormuz, following the U.S.-Israeli war with Iran. This situation has plunged the air travel industry into its most significant crisis since the COVID-19 pandemic.
For context, airlines spent $3.88 billion in March 2025 on jet fuel, far below the $5.06 billion they spent in March of this year. In response to the escalating expenses, major US carriers have implemented fare hikes, increased baggage fees, and cut some routes, alongside other cost-saving measures.
Fuel now accounts for up to a quarter of an airline's operating expenses.
The impact has been severe, with ultra-low-cost carrier Spirit Airlines ceasing operations on Saturday.
The airline cited an additional $100 million in fuel costs during March and April as the reason its restructuring plan failed. Southwest Airlines CEO Bob Jordan acknowledged the widespread challenge, telling Reuters last week: "Every airline is suffering from high fuel prices. It's your job to build your business in a way that you're resilient and you can survive these things because they happen."
Low-cost carriers recently sought a $2.5 billion government bailout to mitigate the higher fuel costs, but Transportation Secretary Sean Duffy stated he did not believe it was necessary "at this point."
