Rising fuel prices delivered another financial shock to major U.S. airlines in March, as carriers spent more than $5 billion on jet fuel, according to new data released by the U.S. Transportation Department. The figure marked a steep $1.8 billion increase from February, pushing fuel expenses up by 56% in just one month.
The sudden jump reflects growing pressure on the aviation sector as instability in global oil markets continues to disrupt airline operations and pricing strategies.
The Transportation Department reported that airlines paid an average of $3.13 per gallon for jet fuel in March. That price climbed 74 cents from February levels, representing a 31% increase. At the same time, fuel consumption rose by 20%, adding another layer of strain on operating budgets.
Industry analysts point to ongoing shipping disruptions in the Strait of Hormuz after the U.S.-Israeli conflict involving Iran intensified. The disruption unsettled oil supply routes and triggered volatility across energy markets. Airlines now face what many executives describe as the sector’s toughest fuel challenge since the COVID-19 crisis.
In comparison, airlines spent $3.88 billion on jet fuel in March 2025, well below the $5.06 billion recorded this year.
Airlines Respond With Higher Fees and Route Cuts
To offset mounting expenses, several major carriers raised airfare prices and baggage fees while scaling back less profitable routes. Fuel costs can account for nearly one-quarter of an airline’s operating expenses, making sudden price spikes especially damaging.
Ultra-low-cost carrier Spirit Airlines, which stopped operations on Saturday, revealed it absorbed an additional $100 million in fuel expenses across March and April. The airline said the unexpected increase contributed to the collapse of its restructuring efforts.
“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.”
Pressure continues to build across the U.S. airline industry as fuel prices remain unstable and global tensions affect oil transportation routes. While some low-cost carriers requested a $2.5 billion federal bailout, Transportation Secretary Sean Duffy said government intervention was not necessary “at this point.”
Airlines now face the challenge of controlling costs without weakening travel demand during a period of uncertain energy prices.