The airline industry entered 2026 expecting fuel costs would provide some relief, as it's one of its biggest and most volatile expenses. Instead, the war with Iran has had the opposite effect, sending prices soaring and forcing carriers across Europe, Asia, and Australia to brace for a longer period of financial strain.
Before the conflict, the International Air Transport Association expected average jet fuel prices to ease to about $88 a barrel this year, with fuel accounting for roughly 25.7% of total airline operating expenses in 2026.
