American Airlines sees $341 million hike in Q1 jet fuel costs

Fuel costs are squeezing U.S. airlines from each space close now. And for American Airlines, the pitchy substance measure got a batch bigger successful Q1.

The Fort Worth-based bearer burned done $341 cardinal much successful pitchy substance during the archetypal 4th of 2026 than it did successful the aforesaid agelong a twelvemonth ago.

That's a achy deed adjacent arsenic the airline managed to station grounds gross weeks and turn full gross by 10.8% year-over-year (YoY) successful the March quarter.

And here's the thing: it could get worse earlier it gets better.

AAL banal is down 14% successful 2026

Jet substance doesn't spike successful a vacuum. The conflict successful the Middle East has been a large operator of the caller terms surge, pushing substance prices to a highest of $4.69 per gallon.

That's much than treble what it was successful aboriginal February, according to the Argus US Jet Fuel Index.

Down astir 14% successful 2026, American Airlines (AAL) banal isn’t unsocial successful absorbing this blow.

According to a Sherwood report:

• Across the six biggest U.S. airlines, the combined substance measure jumped by astir $1.2 billion successful Q1 compared to 2025.

• United Airlinespaid $340 cardinal more, and Delta Air Lines absorbed an other $196 million.

• Alaska Air and Southwest Airlines were besides hit, adding $115 cardinal and $107 cardinal to their substance tabs, respectively.

• JetBlue rounded retired the radical with $62 cardinal successful further costs.

The occupation is that Q1 lone included 1 period of the conflict's afloat impact. Airlines are present bracing for a overmuch harder Q2, with carriers broadly expecting to wage much than$4.26 per gallon — a leap of implicit 50% from the archetypal 4th average.

For AAL, Chief Financial Officer Devon May said the institution is planning for substance astatine astir $4 per gallon successful Q2 based connected the guardant curve arsenic of April 20.

How American Airlines plans to combat back 

Airlines person a fewer tools to offset a substance spike: raise fares, chopped flights, or hike ancillary fees. American Airlines is leaning connected each three.

American Airlines CEO Robert Isom said the institution expects to recapture 40% to 50% of the higher substance costs successful Q2.

That fig is expected to ascent to 75%-85% successful Q3, and potentially into the 90s by Q4, assuming substance prices clasp and capableness continues to decline.

American has already trimmed capableness by suspending Tel Aviv and Doha services, pulling backmost successful Chicago, and reducing different marginal flying.

Related: United Airlines softly cuts escaped perk

Still, Chief Commercial Officer Nat Pieper noted that deeper near-term cuts don't marque fiscal consciousness fixed strong request heading into highest summertime travel.

The hikes that airlines are pushing done are real, and passengers are already feeling them. According to Deutsche Bank's analysis, the industry whitethorn request to rise mean fares by astir 17% to screen substance costs astatine existent prices fully.