Airlines navigate jet fuel price volatility

The US-Israel war with Iran has jet fuel prices taking flight, consequently lifting airlines’ operating costs and hitting bottom lines with ear-shattering sonic booms. Airline CFOs and their C-suite partners have addressed this turbulence head-on in recent earnings calls by acknowledging the impacts of rising fuel costs and laying out how they’re addressing them.

“While we entered 2026 with strong momentum, geopolitical events have quickly disrupted that trajectory, driving an acute run-up in fuel prices that has put pressure on the entire industry,” Shane Tackett, CFO of Alaska Airlines, said on an April 21 earnings call.

The jet-fuel crisis is a painfully predictable result of disruption in the Strait of Hormuz, a key trade corridor through which approximately a quarter of the world’s seaborne oil travels, according to the International Energy Agency. Brent crude oil has jumped more than 55% since the start of the war, CNBC reported on April 21. Jet fuel cost $4.30 a gallon on Thursday, up 72% from the end of February, per the Argus US Jet Fuel Index.

United Airlines leaders are operating under the assumption “that jet fuel remains elevated in the medium term,” CFO Michael Leskinen said on a Wednesday earnings call. “We’re nimbly adjusting the network and cutting capacity that doesn’t cover fuel costs, all while continuing to invest in our people and our hard product.”

A financial blow. The rising cost of fuel reared its ugly head in quarterly financials. Executives said they’re responding by trimming flights and increasing ticket prices.

United Airlines cut its 2026 earnings outlook to between $7 and $11 per share, compared with a range of $12 to $14 back in January, according to CNBC. The company reported a $340 million year over year increase in fuel expenses in Q1. In response, the airline plans for second-half flight capacity to be “flat to up approximately 2% YoY,” representing a five-point drop “versus its original plan.”

Alaska Airlines’ Q1 operating loss grew 42% YoY to $279 million, according to an earnings release. Fuel costs were up 17% YoY to $796 million. Citing “limited” earnings visibility amid the jet-fuel crisis, the company suspended its 2026 guidance “until conditions stabilize.”

Earlier this month, Delta Air Lines reported an 8% YoY jump in adjusted fuel expenses, to $2.6 billion for the quarter. The airline is protecting margins and cash flow by “meaningfully reducing capacity growth,” CEO Ed Bastian said in a news release. Execs also signaled they’ve raised prices. Joe Esposito, Delta’s chief commercial officer, told investors on an April 8 earnings call that “corporate and consumer demand continues to be strong even as we pass through higher fuel.”