Airlines Cut Capacity, Raise Fares After $5B Jet Fuel Bills Surge on Iran War

U.S. airlines spent over $5 billion on jet fuel in March—a 56% monthly jump ($1.8 billion more than February)—with prices averaging $3.13/gallon (up $0.74, 31%) amid 20% higher consumption. The surge stems from U.S.-Israeli strikes on Iran disrupting Strait of Hormuz traffic, propelling crude from $85–90 to $150–200/bbl. Carriers are responding aggressively: American Airlines forecasts a $4bn fuel bill hike and cuts profit outlook; Delta trims capacity 3.5 points and hikes fees; Lufthansa eyes €1.7bn hit with fare increases, pressuring margins and bolstering oil sentiment.