U.S. airlines’ spending on jet fuel surged nearly 5% in August to reach $6.1 billion, according to the Bureau of Transportation Statistics.
Fuel costs rose 4.8% from July, and were up 60% from August 2025. Cost per gallon hit $3.72 in August, up from $3.42 in July and $2.30 one year prior.
At the same time, airline fuel consumption dropped 4.4% month-to-month, to 1.6 billion gallons. Consumption rose during the early summer but began to fall in July.
Global oil prices spiked in August as fighting in the Middle East spread to the Arabian Peninsula. Iraqi and Yemeni militant groups aligned with Iran bombed oil infrastructure in Saudi Arabia, including the critical East-West Crude Oil Pipeline, which was temporarily shut down. At the same time, prospects for a deal between Washington and Tehran that would reopen the Strait of Hormuz – a key conduit for seaborne oil, as well as liquefied natural gas and fertilizer – remain dim.
The Bureau of Transportation Statistics reports aviation fuel costs on a fixed schedule as required by the Office of Management and Budget, but does not include the reasons for cost fluctuations.
Multiple U.S. airline CEOs said last month that capacity cuts may be needed if fuel costs remain high.
