Jet fuel costs soar 78% in past year as Strait of Hormuz remains shut

The cost of fuel for US airlines ballooned to a staggering $6.5 billion in April as the Strait of Hormuz remains shut, the Bureau of Transportation Statistics found in its latest report.

The eye-watering sum is a 78% increase from a year ago and a 26% increase from March, according to the figures.

The cost per gallon of jet fuel was also up 94 cents from March, with prices hitting $4.11 in April. May’s total numbers are expected to swell even further as the war in Iran continues.

Airlines have had to deal with a large spike in fuel costs over the war in Iran. REUTERS

The Islamic Republic shut down the Strait of Hormuz in March in retaliation for the war, closing off a key choke point that oversaw about 20% of the world’s oil transports and leading to soaring fuel prices across the globe.

Airlines have been hit especially hard by the closure, with the International Air Transport Association (IATA) predicting the industry will make only $23 billion in net profit this year — $18 billion less than previous estimates.

The IATA, which represents more than 370 airlines in the US and around the world, projected that the industry’s net profit in 2026 would amount to only $4.50 per passenger, down from $9.10 in 2025.

“Some of the additional cost is being recuperated by adjusting prices and improving efficiency, but it will not be sufficient to maintain profitability at the previous year’s level,” IATA director general Willie Walsh said in a statement.

The Strait of Hormuz remains shut down by threats from Iran and the US blockade on ports to the Islamic republic. X/US Central Command

“Smaller carriers that started the year with weak balance sheets are certainly struggling,” he added.

American Airlines also expects surging fuel costs to tack a staggering $4 to $5 billion onto expenses this year alone, reported Reuters.

The costs have reportedly led the company to suspend six domestic routes later this year, with service expected to be suspended between August and October.

The costs have also led European airlines to cancel some of their routes, with the European Union’s transport chief Apostolos Tzitzikostas warning that the situation will only get worse if the Strait of Hormuz remains shut.

“It’s critical that the war stops and that the Strait of Hormuz opens and this needs to happen as soon as ​possible,” Tzitzikostas told Reuters.

With Post wires