Jet fuel prices rise as airlines face higher costs

Jet fuel reached about US$206 a barrel on Thursday 22 October, according to the Argus U.S. Jet Fuel Index. Forbes reported the following day that the price was about US$4.90 per gallon and was its highest level since the war involving Iran began in late February.

The International Air Transport Association said aviation fuel costs increased during 2026 amid supply disruptions, reduced refining capacity and instability in international energy markets. It said jet fuel markets remained vulnerable to supply constraints and refinery disruptions.

Reuters reported on Thursday 22 October that major U.S. airlines were struggling to recover higher fuel expenses despite higher fares and strong third-quarter revenue. Average U.S. airfares rose nearly 23% year-on-year in the seven months through September, Reuters reported. Several major airlines lowered financial forecasts and were considering further fare increases and reductions in flight capacity.

Higher fuel costs can raise air-cargo charges, particularly for time-sensitive shipments, pharmaceuticals and some food products. The effect of jet fuel prices on goods arriving by sea also depends on diesel, marine fuel, crude-oil and shipping costs.