Jet fuel spikes as airlines warn supplies could run dry within weeks

Jet fuel prices in the U.S. have more than doubled in a matter of weeks as Middle East tensions squeeze supply, fueling concerns airlines could run short of fuel.

Prices jumped from about $2.17 to $4.57 per gallon by March 27, according to the Argus U.S. Jet Fuel Index. Airlines warn inventories could run dry within weeks, raising the risk of higher airfares and flight cancellations.

Airlines are already adjusting. United Airlines CEO Scott Kirby said the carrier will cut about 5% of planned flights in the near term as fuel costs surge, warning that if prices persist, jet fuel alone could add $11 billion in annual expenses.

MAPPED: WHERE GAS PRICES ARE RISING THE FASTEST FROM THE IRAN CONFLICT

United is also scaling back service during off-peak periods and suspending select international routes, including Israel and Dubai due to the conflict.

Meanwhile, Delta Air Lines CEO Ed Bastian said the jet fuel spike added as much as $400 million in costs in March alone. He said the airline is moving quickly to pass those higher costs on through fare increases.

American Airlines also expects fuel to add about $400 million to its first-quarter expenses. 

The impact is also spreading beyond U.S. carriers.

Airlines are starting to raise ticket prices and cancel some flight routes due to the surging fuel costs. (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)

European airline chiefs, including executives from Lufthansa and Air France-KLM, warned that a prolonged conflict in the Middle East will push fares higher and strain already tight fuel supplies, with some cautioning that jet fuel could run out if disruptions persist.

Airlines are already acting on those pressures. Air France-KLM plans to raise long-haul ticket prices, while Cathay Pacific and several Asian carriers are increasing fuel surcharges. SAS said it will cancel about 1,000 flights in April due to rising costs, while Qantas and Thai Airways are also adjusting fares and schedules.

THE UNLIKELY TOOL TRUMP IS EYEING TO TACKLE RISING OIL PRICES AMID THE IRAN CONFLICT

Much of the globe's jet fuel supply moves through the Strait of Hormuz, where tanker traffic has slowed sharply amid rising regional tensions. (Angus Mordant/Bloomberg via Getty Images)

Jet fuel, one of airlines’ largest expenses, is especially volatile due to thin inventories, specialized storage and limited spot trading, which can amplify price swings when supply tightens.

The Middle East exports about 1.1 million barrels per day of jet fuel—roughly 15-17% of global consumption—according to Jaime Brito, executive director of refining and oil products at OPIS.

Much of that supply moves through the Strait of Hormuz, where tanker traffic has slowed sharply amid rising regional tensions.

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A satellite image shows the Strait of Hormuz, a key maritime passage connecting the Persian Gulf to the Gulf of Oman, vital for global energy supply. (Amanda Macias/Fox News Digital)

Just 21 miles wide at its narrowest, the waterway between Iran, the United Arab Emirates and Oman is a critical energy choke point.

The waterway carries roughly 20 million barrels of oil per day and about one-fifth of global liquefied natural gas, along with significant volumes of jet fuel.