Fuel prices for US airlines rise by US$3 billion in May

U.S. airline fuel costs rose 85% in May to nearly $6.7 billion as conflict in the Middle East boosted prices, the U.S. Department of Transportation reported on Monday.

Airlines spent $3.62 billion on fuel in May 2025, compared to $6.66 billion in the same month this year. The cost per gallon of fuel in May was $4.09, an increase of $1.88 from May 2025, USDOT added.

Jet fuel costs in recent weeks have fallen sharply as tensions between Iran and the United States ease.

Fuel costs in April rose by about 80%, reaching almost US$6.5 billion.

Jet fuel prices are down about 40% from April highs, but oil prices rose more than 2% on Tuesday after reports of attacks on vessels near the Strait of Hormuz reignited fears of disruptions to shipping through this key energy transit route.

Airfares rose significantly after the start of the war in Iran and have not yet fallen despite falling jet fuel prices.

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As jet fuel prices soared, U.S. airlines increased ticket prices and baggage fees and reduced flight schedules, but these measures offset only part of the increase in fuel costs.

Delta Air Lines, United Airlines, American Airlines and Southwest Airlines account for about 80% of domestic flights in the United States.

Source: CNN