US Airlines Spent $5 Billion On Fuel In March Alone As Energy Crisis Deepens: Here's How Airline Stocks Have Fared Since Iran War Began

Airline fuel costs surged 56% in March, the Department of Transportation said Wednesday, marking a sharp jump in the first full month after the U.S.-Israeli war with Iran began and the Strait of Hormuz disruption shook global energy markets.

Airlines’ Fuel Bills Jump Past $5 Billion

The department's Bureau of Transportation Statistics said U.S. scheduled service airlines spent $5.06 billion on fuel in March, up 56.4% from $3.23 billion in February. Airlines used 1.615 billion gallons, up 19.5% from February, while the average cost per gallon rose to $3.13, a 31% increase. March spending also exceeded the $3.88 billion airlines spent on fuel in March 2025.

Oil and gas prices have climbed since the conflict with Iran began and the Strait of Hormuz, a critical waterway for energy shipments, became effectively closed. Reuters reported that soaring jet fuel prices have created the industry's biggest crisis since the COVID-19 pandemic. It also notes that fuel can account for up to a quarter of airline operating expenses, forcing major carriers to raise fares and baggage fees, cut routes and find other savings.

Spirit Collapse Deepens Industry Pressure

Spirit Aviation Holdings Inc. (OTC:FLYYQ), which ceased operations Saturday, said this week it paid $100 million in extra fuel costs in March and April. The company cited the fuel spike as a reason its restructuring plan failed, though Transportation Secretary Sean Duffy has rejected the idea that fuel prices alone caused Spirit's shutdown.

Low-cost carriers, including Frontier Group Holdings Inc. (NASDAQ:ULCC) and Avelo, asked USDOT last month for a $2.5 billion bailout tied to higher fuel costs, but Duffy said he did not think such aid was necessary "at this point."

Meanwhile, Trump on Tuesday paused his operation in the Strait of Hormuz as reports said Washington and Tehran were nearing a framework deal, though he also threatened renewed attacks if talks failed.

Airline Stocks In Red Since War Began

Most major airline stocks have been in the red since the war began. Using Feb. 27 closing prices as the pre-war baseline, Delta Air Lines Inc. (NYSE:DAL) is up about 12%, while United Airlines Holdings Inc. (NASDAQ:UAL) is down about 6%, American Airlines Group Inc. (NASDAQ:AAL) is down about 1%, Southwest Airlines Co. (NYSE:LUV) is down about 16%, and Alaska Air Group Inc. (NYSE:ALK) is down about 22%.

Image via Shutterstock/ Jaromir Chalabala