broader industry facing $25 billion in unplanned costs. Jet fuel has doubled since February, and every major U.S. airline is feeling it. Delta, United, Southwest, and American Airlines all fell more than 2% as oil costs keep climbing, with the global price of jet fuel topping $4.88 a gallon - more than double what it was before the U.S. and Israel launched strikes against Iran on February 28.
United is down 21%, American has lost a quarter of its value, and Delta is off 17%. The numbers are staggering: United CEO Scott Kirby warned the airline's annual fuel bill could grow by $11 billion if prices stay here, while analysts estimate the entire U.S. airline industry faces $25 billion in unplanned fuel costs this year.
Airlines are pulling every lever they can find. Delta, Southwest, United, and JetBlue all raised checked bag fees by $10 this week, while Delta is cutting some 2026 capacity and United plans to cancel about 5% of near-term flights. Only three U.S. carriers - Delta, United, and Southwest - can still turn even a thin profit at current fuel prices.
Fuel is the second-biggest bill airlines pay, right behind labor. If oil stays above $100 a barrel through summer, the flight cuts and fee hikes will keep spreading - separating the carriers that hedged their fuel costs from those that didn't.
