WASHINGTON – Major US passenger airlines spent just over US$5 billion (S$6.3 billion) on jet fuel in March, up US$1.8 billion or 56 per cent from what they spent in February, the US Transportation Department said on May 6.
The cost per gallon of fuel in March was US$3.13, up 74 cents, and 31 per cent over February. Fuel use rose 20 per cent in March, USDOT added.
Since the US-Israeli war with Iran began, disruptions to shipping through the Strait of Hormuz have roiled global oil markets. Surging jet fuel prices have created the air travel industry’s biggest crisis since the Covid-19 pandemic.
Airlines spent US$3.88 billion in March 2025 on jet fuel, far below the US$5.06 billion they spent in March of this year.
Major US carriers have hiked air fares and baggage fees, cutting some routes and making other cost cuts. Fuel accounts for up to a quarter of airline operating expenses.
Ultra-low cost carrier Spirit Airlines, which ceased operations on May 2, said this week it paid US$100 million in additional fuel costs in March and April. It cited the fuel spike as the reason its restructuring plan failed and it was forced to end operations.
“Every airline is suffering from high fuel prices,” Southwest Airlines chief executive officer Bob Jordan told Reuters last week. “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 last month asked USDOT for a US$2.5 billion government bailout to address higher fuel costs, but Transportation Secretary Sean Duffy said he did not think that was necessary “at this point”. REUTERS
