Global jet fuel prices have surged 113% since the Middle East conflicts broke out, reaching about $193 per barrel, according to IATA data. IATA projected that global airline fuel spending would reach roughly $350 billion in 2026, nearly 31% of total operating costs and about 6 percentage points higher than last year. US airfares have jumped nearly 23% year over year since the US-Iran conflict began, and industry observers expect fares to rise further next year as fuel hedging ratios decline, though they are unlikely to return to pre-conflict levels even if oil prices fall. Airlines are still under heavy strain: American Airlines' third-quarter revenue grew nearly 20%, yet it posted a net loss of about $270 million, while Delta, Southwest and United lowered their full-year earnings guidance. Airlines for America said carriers are on track to lose $12 billion this year as they absorb most of the fuel costs, and Spirit Airlines announced in May that it would cease operations.
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