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Jet Fuel Prices Surge, Airlines Cut Capacity, Raise Fares

4/27/2026

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Summary

Story summary

Mike Wirth (Chevron CEO) warned Iran-war disruption of Strait of Hormuz shipments will tighten jet fuel supplies.
He said U.S. jet fuel rose from $2.50 to $4.19 per gallon by April 24.
Airlines such as United and Delta will cut capacity by about 5 % and 3.5 percentage points respectively.
Airlines are raising ticket prices up to 20 % and adding higher baggage fees to offset fuel costs.

History

Historical Context

In October 1973 OAPEC announced a coordinated cut of roughly 5 million barrels per day and raised the posted price from $3.01 to $5.12 per barrel, triggering the first oil shock that quadrupled gasoline prices in the United States and Europe. The embargo lasted until March 1974, prompting strategic-reserve policies that Chevron CEO Mike Wirth now cites as a warning for today’s Iran-U.S. tensions.

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Story summary

Mike Wirth (Chevron CEO) warned Iran-war disruption of Strait of Hormuz shipments will tighten jet fuel supplies.
He said U.S. jet fuel rose from $2.50 to $4.19 per gallon by April 24.
Airlines such as United and Delta will cut capacity by about 5 % and 3.5 percentage points respectively.
Airlines are raising ticket prices up to 20 % and adding higher baggage fees to offset fuel costs.

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