Airlines and U.S. Travel

Jet fuel prices in the U.S. have more than doubled in a matter of weeks, from about $2.17 to $4.56 per gallon by March 20 according to the Argus U.S. Jet Fuel Index, as reduced traffic through the Strait of Hormuz and broader Middle East tensions choke supplies. United Airlines CEO Scott Kirby says the carrier will cut roughly 5% of planned flights in the near term, warning that if current prices persist, jet fuel alone could add about $11 billion in annual expenses and has already led United to trim off‑peak service and suspend routes to Israel and Dubai. Delta CEO Ed Bastian told investors the March spike has added up to $400 million in fuel costs this month, while American Airlines expects about $400 million in extra first‑quarter fuel expenses and airlines across Europe and Asia are raising fares, adding fuel surcharges, and cancelling flights. Analysts note jet fuel markets are especially vulnerable because of thin inventories and specialized storage, and the Middle East currently exports around 1.1 million barrels per day of jet fuel—roughly 17% of global demand—meaning even modest disruptions around the 21‑mile‑wide Strait of Hormuz can quickly ripple into higher fares and reduced capacity for U.S. travelers. The squeeze underscores how the Iran war and the threat to a key energy chokepoint are now feeding directly into air‑travel costs and potential schedule disruptions for American passengers.