Story perspectives

Jet Fuel Spike Forces Flight Cuts, Profit Forecast Slashed

6/9/2026

Summary

Airlines Face Surge

U.S. airlines spent over $6 billion on jet fuel in April, 78 % higher than a year earlier.
Jet fuel cost $4.11 per gallon in April, up from $2.31 a year earlier.
International Air Transport Association (IATA) projects airline net profit of $23 billion in 2026, down from its $41 billion 2025 forecast.
Lufthansa Group will cut 20,000 short-haul flights through October while Air Canada suspends JFK service from June until late October.

Summary

Airlines Spend SAF

Airlines will spend $4.3 billion on sustainable aviation fuel (SAF) in 2026, 0.8% of fuel use.
SAF production will be 2.4 million tonnes in 2026, below 500 million-tonne 2050 goal.
Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) compliance will cost $1.2-$1.6 billion in 2026.
Engine makers posted double-digit profit growth, prompting IATA chief Willie Walsh to accuse them of gouging airlines.
Order backlog rose to 18,100 units—over half the fleet—halting fuel-efficiency gains.

Summary

Ryanair Base Closure

Ryanair will close its Thessaloniki Airport base in October 2026 after staff were notified.
The closure follows a dispute with Fraport Greece over recently increased airport charges.
IATA links the jet-fuel price surge to the U.S.–Iran conflict that began on February 28, 2026.
Despite higher costs, IATA says travel demand stays resilient, with 86 % expecting fares to follow oil prices and 49 % planning to spend more on travel this year.

History

Historical Context

In October 1973 OAPEC, led by Saudi King Faisal, cut production and imposed an oil embargo that lifted world oil prices nearly 300%, sparking the first oil shock. The embargo drove jet-fuel costs to triple and forced Lufthansa to cut routes. The 2026 jet-fuel surge, linked by IATA chief Willie Walsh to the U.S.–Iran conflict, echoes that shock, prompting Ryanair and Air Canada to slash flights.

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Airlines Face Surge

U.S. airlines spent over $6 billion on jet fuel in April, 78 % higher than a year earlier.
Jet fuel cost $4.11 per gallon in April, up from $2.31 a year earlier.
International Air Transport Association (IATA) projects airline net profit of $23 billion in 2026, down from its $41 billion 2025 forecast.
Lufthansa Group will cut 20,000 short-haul flights through October while Air Canada suspends JFK service from June until late October.

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