US carriers spent $6.5B on fuel in April; global profit forecast is cut nearly in half

U.S. airlines spent more than $6 billion on jet fuel in April, up 78% from a year earlier despite using slightly less fuel, government data released Monday showed. Meanwhile, the airline industry’s top global trade group warned that soaring energy costs could nearly halve profits in 2026.

Since conflict erupted in the Middle East earlier this year after the U.S. and Israel launched strikes on Iran, much of the shipping traffic through the Strait of Hormuz — a critical oil transit route bordering Iran — has remained effectively halted, pushing up the price of oil and jet fuel.

In an effort to contain costs, airlines around the world have raised airfares and fees, cut other perks and canceled flights or trimmed schedules.

U.S. carriers spent nearly $6.5 billion on fuel in April, compared with about $3.6 billion a year earlier, according to the Bureau of Transportation Statistics. Fuel consumption in April totaled 1.573 billion gallons, down slightly from 1.575 billion gallons a year earlier.

The latest figures came as the International Air Transport Association released a report on Sunday saying it now expects airlines worldwide to earn a combined $23 billion in net profit in 2026, far below its previous forecast of $41 billion and down from $45 billion 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 group said jet fuel prices are expected to average $152 a barrel in 2026, nearly 70% higher than in 2025, pushing the global airline fuel bill to about $350 billion from $252 billion a year earlier. IATA said that fuel is forecast to account for more than 31% of airline operating expenses in 2026, up from about 25% last year.

In the U.S., the cost of a gallon of jet fuel in April was $4.11, the Bureau of Transportation Statistics said. Last April, it cost $2.31.

In a sign of the conflict’s ongoing repercussions for travel, American Airlines said last week it was suspending some of its routes this summer. In April, Lufthansa Group said it would cut 20,000 short-haul flights through October and Air Canada announced it was suspending its service to New York’s John F. Kennedy International Airport from June until late October.

Other airlines, ranging from U.S. carriers like United and Delta to Air France-KLM, Philippine Airlines and Cathay Pacific in Europe and Asia, have either cut flights, readjusted their schedules or halted plans to add more seats and routes this year.