Jet Fuel Nears Double 2025 Levels as US Airfares Rise 23%

The price of jet fuel remained close to double its 2025 levels, as the Argus fuel index average across four US markets reached $4.30 per gallon on September 25, nearly double the average recorded last year, placing a heavy burden on airline operating costs.

According to the International Air Transport Association (IATA) tracker, the global average approached $195 per barrel in mid-September, levels that are forcing airlines to reconsider their pricing and profit margins, particularly on long-haul routes that consume more fuel.

According to data, US airfares in August rose by 23% compared to last year, with Hopper data indicating that the average round-trip ticket price for Thanksgiving reached $402, and $452 for Christmas, marking their highest levels in a full decade.

Analysts say fuel costs remain the largest factor in flight pricing, and that falling energy prices are not immediately reflected in ticket prices because airlines operate on futures contracts that hedge against short-term volatility. This means high prices may persist for a while even if oil prices drop, which matters to travelers in the region who rely on long-haul flights.

What do these terms mean?

Argus Index: A benchmark for jet fuel prices in specific markets used as a reference for spot delivery prices. Futures Contracts: Agreements to buy a commodity at a predetermined price for later delivery, used by companies to hedge against price volatility. Peak Travel: Holiday and vacation periods when demand spikes, driving up prices.