By JBizNews Desk
NEW YORK — April 30, 2026
Major U.S. airlines including Delta, United, and American issued fresh warnings Thursday that the explosive rise in jet fuel prices — now tracking crude above $125 per barrel — will significantly pressure second-quarter margins and could force fare increases or capacity cuts later this year.
Jet fuel, which typically accounts for 25-35% of airline operating costs, has spiked more than 40% in the past month alone. Carriers are already burning through hedges put in place earlier in the year and are now facing the full brunt of spot-market pricing.
Business Implications
The oil shock is hitting the travel sector at a particularly vulnerable time, just as summer booking season begins. Investors are pricing in lower guidance for the group, with airline stocks opening sharply lower in pre-market trading. Leisure and business travel demand remains solid, but higher ticket prices could begin to dampen consumer enthusiasm if the energy crisis persists into the peak summer months.
— JBizNews Desk
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