Airlines Slash Profit Outlook as Jet Fuel Doubles in Cost

Jet fuel prices surged 82% since Iran tensions escalated, hitting $4.56 per gallon by May. Airlines passed costs through higher fares, fuel surcharges, and baggage fees. The International Air Transport Association cut its 2026 profit forecast on June 7. Today's 7% oil jump deepens pressure on carriers with limited fuel-price hedges for the second half.