Global airlines are facing the brunt of surging jet fuel prices. Approximately two million passenger seats have been removed from May 2026 flight schedules after carriers are forced to shrink networks or risk insolvency. The trigger was the Iran war, which began in late February 2026 and has since caused jet fuel prices to roughly double. As American travelers absorb the loss of Spirit Airlines, the question arising is which low-cost carrier goes next?
Jet fuel is typically the single largest operating cost for any airline accounting for about a quarter of airline operating expenses, and the Strait of Hormuz blockade-led spike has left budget carriers with almost no margin to absorb. The cost of fuel in March was $3.13 per gallon, up 74 cents, and 31 per cent over February. Fuel use rose 20% in March, according to USDOT, which has compressed route economics across the board. The Iran conflict constrained key transit routes, which drove up prices, shrinking supply ahead of peak summer travel demand.
