Airlines around the world have responded to the surge in fuel prices by increasing fares and fees and cutting flight schedules. (Ozgurcoskun/Getty Images)
key takeaways:
- According to a July 7 Bureau of Transportation Statistics report, U.S. airlines spent $6.66 billion on jet fuel in May, exceeding $6 billion for the second consecutive month.
- Prices rose 85% year over year to $4.09 a gallon due to higher spending, while consumption declined slightly, reflecting energy market disruptions linked to the Middle East conflict.
- Airlines and investors are keeping an eye on declining fuel prices and upcoming earnings, including Delta Air Lines’ July 10 report, for signs of how costs will shape the industry’s finances.
U.S. airlines spent $6.66 billion on jet fuel in May, according to government data released July 7, the second consecutive month that fuel costs have exceeded $6 billion.
The May figure was 84% higher than a year earlier. The Bureau of Transportation Statistics said airlines spent $6.47 billion on fuel in April.
The higher year-on-year spending was mostly due to costlier jet fuel, rather than a significant increase in its consumption by airlines. U.S. carriers used 1.627 billion gallons in May, down 0.6% from May 2025. Consumption was also slightly lower in April compared to a year ago.
The average price paid by airlines for fuel in May was $4.09 per gallon, down slightly from $4.11 in April, but 85% more than the $2.21 paid in May 2025, the agency said.
Airlines around the world have responded to the surge in fuel prices by increasing fares and fees and cutting flight schedules. Fuel is typically one of the industry’s largest operating costs, making carriers particularly sensitive to fluctuations in energy prices.
The latest figures show the continuing impact of a sharp increase in energy costs after conflict erupted in the Middle East this year and disrupted shipping through the Strait of Hormuz, a key route for global crude oil and fuel supplies.
BTS data release: US airlines’ May 2026 aviation fuel costs increased by 3.0%, consumption increased by 3.5%, and per gallon fuel costs decreased by 0.5% from April 2026
The cost of fuel per gallon in May 2026 ($4.09) was $0.2 (0.5%) less than April 2026 ($4.11) and $1.88 (85.0%) more than May 2025 ($2.21).… pic.twitter.com/NRfQcuFLE1
– Bureau of Transportation Statistics (BTS) (@bts_usdot) 7 July 2026
Fuel prices have fallen from their spring highs after the US and Iran reached an interim ceasefire deal, providing some relief to airlines after an expensive spring season. But the ceasefire remains fragile.
According to the British military, on July 7, three tankers were shelled in the Strait of Hormuz and the US revoked the license that allowed the sale of Iranian oil under the agreement.
Read more: BP boosts European jet fuel production by 30% during Iran war
Delta Air Lines is set to report its second-quarter financial results on July 10, kicking off a wave of earnings reports from U.S. carriers. Officials are expected to discuss how the recent drop in fuel prices could impact the industry’s finances going forward.
The average price of a gallon of jet fuel in the major airline hubs of Chicago, Houston, Los Angeles and New York on July 7 was $2.88, according to the Argus US Jet Fuel Index. The price fell below $3 a gallon on June 15 for the first time since early March and has remained below that since.
