US airlines' fuel costs spiked by 56% in March, new data show

Fuel costs for U.S. airlines increased by more than 56% in March from the month before, according to data from the federal government, shedding light on how the ongoing conflict in the Middle East is affecting the sector.

The U.S. Department of Transportation's Bureau of Transportation Statistics said in a news release Wednesday that oil consumption also grew by 19.5% from February to March and fuel cost per gallon was up almost 31%. The costs were also significantly higher when compared to March of last year.

Spiking fuel prices have been at the center of conversations in the airline industry since the U.S. and Israel launched the war with Iran in late February, largely shuttering the Strait of Hormuz, a key passageway for oil transports. The situation has resulted in carriers increasing fares and baggage fees, as well as cutting routes - creating anxiety for travelers heading into the busy summer travel season.

Defunct budget carrier Spirit Aviation Holdings Inc. also said the higher oil prices fueled its decision to cease operations over the weekend after more than 30 years in business.

Higher fuel costs have raised the possibility for consolidation among other airlines. United Airlines Holdings Inc. Chief Executive Officer Scott Kirby said last month that he had approached rival American Airlines Group Inc. about a potential merger.

Prior to that, Bloomberg reported he'd floated the proposal to government officials, including President Donald Trump. American rebuffed the attempt and Trump has also said he doesn't like the idea.

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This story was originally published May 6, 2026 at 6:00 PM.