US Says Airline Jet Fuel Costs Jumped $1.8 Billion or 56% in March

(Reuters) – Major U.S. passenger airlines spent just over $5 billion on jet fuel in March, up $1.8 billion or 56% from what they spent in February, the U.S. Transportation Department said on Wednesday.

The cost per gallon of fuel in March was $3.13, up 74 cents, and 31% over February. Fuel use rose 20% in March, USDOT added.


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Since the U.S.-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 $3.88 billion in March 2025 on jet fuel, far below the $5.06 billion they spent in March of this year.

Major U.S. 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 Saturday, said this week it paid $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 operatoins.

“Every airline is suffering from high fuel prices,” Southwest Airlines CEO 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 $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.”

Reporting by David Shepardson; Editing by David Gregorio

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