Airlines' Profit Forecast Cut as Jet Fuel Costs Up 82% Since Iran War Started

US jet fuel hit $4.56 per gallon by early May—up 82% since the conflict began. Airlines raised fares, added fuel surcharges, and increased baggage fees through spring. IATA slashed its 2026 global airline profit forecast on June 7, citing fuel costs and operational disruption. Today's 7% oil surge compounds the pressure on carriers heading into the second half with thin hedging protection.