Jet fuel prices surge 82.8% in a month, hammering airlines amid Iran war

Global average jet fuel prices have surged 82.8% over the past month, sharply increasing cost pressures on airlines, according to the International Air Transport Association's (IATA) latest fuel price monitor. IATA data showed jet fuel prices rose 11.2% week-on-week to $175 per barrel in the latest reporting period. The figures, published under license from S&P Global Energy, reflect average refinery prices for aviation fuel.

Annual comparison

On an annual basis, jet fuel prices were up 94.4%, highlighting the scale of the recent increase. The surge follows a 58.4% jump in the previous weekly reading, underscoring the rapid pace of market movements. The spike is expected to weigh heavily on airline margins, as fuel remains one of the industry's largest operating costs. IATA has noted that sudden price increases tend to be more damaging than sustained high prices, as airlines have less time to adjust fares, capacity and procurement strategies.

Conflict-driven volatility

The latest rise comes as airlines also face broader disruptions linked to the Middle East conflict, including flight rerouting, suspended services and higher operational costs. Brent crude prices climbed to as high as $119.5 per barrel following the launch of US-Israeli strikes on Iran on Feb. 28, before stabilizing at around $100. The Strait of Hormuz closure has disrupted approximately 20 million barrels of daily oil shipments, contributing to market volatility.

Conflict context

The US and Israel's attacks have killed around 1,300 people in Iran according to Iranian authorities, including former Supreme Leader Ayatollah Ali Khamenei and more than 150 schoolgirls. Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq and Gulf countries hosting US military assets, causing casualties and damage to infrastructure, while disrupting global markets and aviation. The conflict has expanded to include a ground offensive in Lebanon displacing over one million people.

Industry impact

Airlines globally are grappling with both higher fuel costs and operational disruptions as airspace closures and security concerns force route changes and cancellations. The combination of rising input costs and reduced operational efficiency threatens to push up ticket prices and strain carrier finances.