US Airlines Brace for Second Year of Turmoil as Fuel Costs Surge

US airlines were preparing to put aside the chaos caused by US President Donald Trump’s tariffs this year and the ensuing plunge in travel demand. Instead, they face a second year of turmoil as jet fuel prices spike amid war in the Middle East.

Jet fuel, responsible for as much as 30% of an airline’s costs, soared in the past week to over $4 a gallon after hovering around $2 for most of 2025. As a result, airlines now have to find the right balance between raising fares to cover that expense and being mindful of the price sensitivity ...