Jet fuel supply concerns grow as war on Iran drags on, airlines cut flights

Airlines are trimming schedules and adding surcharges while raising fees and fares in response to rising jet fuel prices; jet fuel is the carriers' largest cost after labor. The moves imply higher consumer ticket prices and reduced capacity, creating headwinds for demand and pressuring airline margins.

Analysis

Airlines are trimming schedules and adding surcharges while raising fees and fares in response to rising jet fuel prices; jet fuel is the carriers' largest cost after labor. The moves imply higher consumer ticket prices and reduced capacity, creating headwinds for demand and pressuring airline margins.