Jet Fuel Hits Record High and US Airfares Rise 32%
In September, jet fuel reached an all-time monthly high of $4.37 per gallon, with average US domestic airfares rising nearly 32% year-on-year.
The average price of jet fuel reached $4.37 per gallon in September, an all-time monthly high exceeding the previous record set in April at $4.29, according to a report by the travel industry platform Skift.
The price rose to $4.50 by Thursday amid price volatility experienced since the start of the war in Iran and the escalation of fighting in the region. Airlines passed on a large portion of this cost to travelers, with the average US domestic ticket rising by about 32% compared to last year, according to Kayak data.
United CEO Scott Kirby said cheap tickets will not return. A Deutsche Bank note indicated that only four major US airlines are expected to turn a profit this year: Delta, United, Southwest, and Allegiant, while American, Alaska, JetBlue, and Frontier are likely to post losses.
Delta was the first to report its results this season, as third-quarter revenue rose 16% to $17.59 billion, but it lowered its 2026 profit outlook and expects to incur nearly $6 billion in additional fuel expenses. Its CFO stated that the adjustment was entirely due to fuel, while demand remains solid.
What Do These Terms Mean?
Jet Fuel: A type of refined fuel intended for civil aircraft, representing one of the largest cost items in airline operations.
Fuel Hedging: A contract through which a company purchases fuel at predetermined prices to reduce the impact of future price volatility.
Capacity: The number of seats or flights offered by an airline, reductions of which are used to cut costs when prices rise.
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