AAL, UAL, DAL, LUV In Focus - US Airlines' Fuel Costs Soared 78% In April, Transport Department Says

Rising energy prices driven by Middle East tensions pushed U.S. airlines’ April 2026 fuel costs sharply higher, even as carriers used less fuel overall.

• Total fuel spending for U.S. scheduled airlines surged 78% year-over-year to $6.47 billion.
• The average cost of jet fuel reached $4.11 per gallon, an increase of 29.6% from March and a 78.2% jump from the $2.31 average in April 2025. 
• Overall fuel consumption actually decreased slightly, with carriers using 1.57 billion gallons in April, which is 2.6% lower than the previous month and 0.2% less than a year ago. 

Surging jet fuel prices driven by geopolitical tensions in the Middle East pushed U.S. passenger airlines’ fuel expenses up 78% in April from a year earlier, to nearly $6.5 billion..

The monthly fuel cost and consumption report, released on Monday by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS), highlights a widening squeeze on the aviation industry. Airlines paid an average of $4.11 per gallon in April, a drastic increase of $1.81 from April 2025.

Delta Airlines (DAL) and Southwest Airlines (LUV) share prices eased between 0.7% and 1%, United Airlines (UAL) was flat, while American Airlines (AAL) was the only one up 1.8% at the time of writing. 

US-Iran War Continues To Spike Fuel Costs

Ballooning expenses are entirely due to price inflation rather than increased operations. In fact, U.S. carriers consumed 1.573 billion gallons of fuel in April, representing a slight 0.2% decrease from a year ago and a 2.6% drop from March 2026. Month-over-month, overall fuel expenditures still managed to jump 26.2% from March’s $5.12 billion.

The financial pressure has already triggered industry-wide consequences. High energy prices forced ultra-low-cost carrier Spirit Airlines to cease operations in May, citing unsustainable fuel burdens. The major "Big Four" carriers—Delta Air Lines, United Airlines, American Airlines, and Southwest Airlines—which account for roughly 80% of domestic flights, are grappling with the same pressures.

Compounding the problem, the ongoing Middle East conflict has forced carriers to reroute flights around closed or restricted airspace. These adjustments increase fuel burn per route, straining capacity at a time when refinery margins are widening and driving jet fuel costs higher.

As a result, travelers are bearing the brunt of the cost. Search data from KAYAK indicates that average airfares departing from the U.S. have jumped by up to 31% for domestic flights and 22% for international trips compared to the same period last year.

The International Air Transport Association (IATA) sharply downgraded its global industry projections over the weekend. IATA now expects a combined net profit of $23 billion for airlines in 2026—roughly half of its previous forecast of $41 billion, and down significantly from the $45 billion posted in 2025.

Retail View: AAL, DAL, UAL and LUV 

Retail sentiment on AAL and DAL stock was ‘extremely bearish’ with ‘high’ message volumes, while sentiment was ‘neutral’ for LUV and UAL shares. 

Retail chatter on Stocktwits has soared about 160% on average over the past seven days for the four airline stocks. 

AAL stock has lost 10.4% year-to-date (YTD), UAL slipped 6.7%, DAL gained 12.4%, while LUV stock was flat so far this year. 

The iShares US Transportation ETF (IYT) has gained about 13% YTD.

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