A Lufthansa passenger aircraft is parked at a gate while a SASCA fuel truck services it on the apron at Toulouse Blagnac Airport in Blagnac in Occitanie in France on March 15, 2026.

Isabelle Souriment | AFP | Getty Images

The surging price of jet fuel isn’t the airline industry’s only problem. Now, it’s whether it will have enough.

Since the U.S. and Israel attacked Iran on Feb. 28, the price of jet fuel in the U.S. has nearly doubled, going from $2.50 a gallon on Feb. 27 to $4.88 a gallon on April 2, with the increases even sharper in other regions. The effective closure of the Strait of Hormuz is choking off supplies of both crude and refined products like jet fuel, further driving up the price.

That’s forcing airlines to consider cutting flights, especially overseas.

Carsten Spohr, CEO of Germany’s Deutsche Lufthansa, told employees in a webcast last week that the carrier is assigning teams to come up with contingency plans because of the war in the Middle East, including for drops in demand or a lack of jet fuel, a spokesman said. Those plans could include grounding some of its aircraft.

The U.S. produces a lot of jet fuel and isn’t as exposed as other regions like Europe and parts of Asia are in comparison. But aircraft fill up locally, so some U.S. airlines could face shortages on international trips.

United Airlines CEO Scott Kirby told reporters late last month that the carrier, which has the most service to Asia among U.S. airlines, would have to cut back its flights there. He also said it’s “not impossible” that airlines collectively would have to reduce service in that region.

He noted that as the price of jet fuel goes up, it could be more acute in parts of the U.S. that aren’t as connected by pipelines.

“There’s not enough refining capacity, and so fuel price prior to this and going forward is more susceptible to supply weakness on the West Coast than anywhere else in the country,” he said.

Kirby told employees earlier in March that the airline is preparing for oil to stay above $100 a barrel through 2027 and is pruning some of its flights in the near term.

“To be clear, nothing changes about our longer-term plans for aircraft deliveries or total capacity for 2027 and beyond, but there’s no point in burning cash in the near term on flying that just can’t absorb these fuel costs,” he said in a March 20 message to employees.

Travel demand wild card

Airlines overall are pruning some flights for the coming months, though they often adjust schedules throughout the year to match demand, aircraft availability or other complications.

Domestic capacity in the second quarter for U.S. carriers is up 2.1%, down from previous plans of 2.3% growth, while total capacity is set to rise 1.1%, down from 2.4% on the week ended March 20, according to a Monday report from UBS.

“We expect more capacity cuts in the coming weeks,” UBS said.

So far, airline executives have said that travel demand is strong, but the fuel strains and price spikes are a headache for carriers and passengers alike as the peak summer travel season approaches.

Fuel is generally airlines’ biggest expense after labor, and carriers are already raising airfare and fees like for checked luggage to make up for the added cost.

Investors will be listening for more insights into how the jet fuel spike could affect the industry as airline earnings kick off Wednesday with Delta Air Lines. That carrier owns a refinery, so it could benefit from jet fuel sales.

Delta on Tuesday raised checked bag fees, joining JetBlue Airways and United, which did the same last week.

The strong demand, particularly compared with this time last year could further insulate airlines, at least in the U.S. Last year, bookings fell as President Donald Trump’s trade war kicked off with steep tariffs, markets sank and layoffs within the government, led by Elon Musk’s so-called Department of Government Efficiency, took effect.

“The positive commentary on demand is still holding, but fuel at $4/4.50 [a gallon] for longer isn’t something airlines can pass through,” said Savanthi Syth, an airline analyst at Raymond James. “If fuel stays high, you’ll just see capacity being cut.”

Airlines could see a bigger problem if higher gasoline prices and other pressures on consumers cause a pullback in spending.

“We’re watching the airlines very closely right now. This doesn’t have to go on too terribly long at these [fuel price] levels before you start to see potential for ratings pressures,” said Joseph Rohlena, senior director at Fitch Ratings who covers U.S. airlines.

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A passenger Mohd Umardaraz from Bijnor Uttar Pradesh stranded at Terminal-3 Delhi airport after his flight for Kuwait is cancelled due to airspace restrictions over Iran and parts of the Middle East on March 1, 2026 in New Delhi, India.

Arvind Yadav | Hindustan Times | Getty Images

The first flights out of Dubai, United Arab Emirates, departed Monday after more than 11,000 were canceled in the Middle East since the U.S. and Israel attacked Iran on Saturday.

It’s a sign of how airlines are preparing to restart service to the region after mass cancellations, but local authorities gave airlines a green light only to resume a “limited number” of flights.

The first was Emirates flight EK500, which departed at 9:12 p.m. local time bound for Mumbai, India, according to Flightradar24, a flight tracking site. The flight was operated on an Airbus A380, the world’s biggest passenger plane.

Another, Flydubai flight to Warsaw, Poland, departed after 1 a.m. local time Tuesday, Flightradar24 said. An Air Baltic plane left Dubai but the Latvia-based carrier said it was solely a repositioning flight, not carrying passengers.

Separately, Israeli airline El Al said Monday that it’s considering chartering private jets to bring stranded Israeli citizens home.

The announcements mark a potential improvement after air travel ground to a halt in a large swath of the Middle East over the weekend following the U.S.-Israeli strikes on Iran and subsequent retaliatory strikes.

The attacks shut airspace over a large part of the region, stranding hundreds of thousands of customers around the world, including those who weren’t flying to and from the area since aircraft couldn’t transit those zones. Dubai is one of the busiest air travel hubs in the world.

The airport authority that owns and manages airports in Dubai said a small number of flights would be permitted to operate from Dubai International and Dubai World Central – Al Maktoum International, but advised travelers to check with their airlines.

For its part, Emirates said it will start operating a “limited number of flights” Monday night and urged customers not to go to the airport unless notified by the airline.

“We are accommodating customers with earlier bookings as a priority,” it said in a post on X. “All other flights remain suspended until further notice,” it said.

El Al said it is considering hiring KlasJet planes to take passengers from European airports to Aqaba, over the southern border in Jordan, for customers of the airline. It previously considered flying in and out of Taba, Egypt, but later Monday said that plan was scrapped “due to the lack of approval from the security authorities in Israel.”

Etihad Airways based in Abu Dhabi, UAE, said Monday that all commercial flights to and from the city are suspended until afternoon local time on Wednesday, though it could operate some cargo and repatriation flights “subject to strict operational and safety protocols.”

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Travelers at LaGuardia Airport (LGA) in the Queens borough of New York, US, on Friday, Dec. 26, 2025.

Michael Nagle | Bloomberg | Getty Images

Airlines canceled more than 1,500 U.S. flights on Friday ahead of a major winter storm that will put carriers to the test during one of the busiest travel periods of the year.

A winter storm warning is in effect starting Friday afternoon in New York City, New Jersey and Long Island, with snowfall totals potentially reaching 9 inches, much of it falling Friday night, the National Weather Service said.

Over 370 flights, or more than a quarter of the day’s schedule, were canceled as of 5 p.m. ET Friday to and from New York’s John F. Kennedy International Airport, according to flight-tracking site FlightAware. More than 240 were also scrubbed at Newark Liberty International Airport in New Jersey, and more than 140 were canceled at Philadelphia International Airport.

Airlines have already canceled a fifth of the departures, or 125 flights from Kennedy Airport on Saturday and 69 flights or 10% of flights scheduled to depart Newark and 20%, or 80 flights from LaGuardia Airport in New York.

American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, JetBlue Airways and other carriers waived change fees for restrictive basic economy tickets and said they won’t charge a difference in fare for any other customers flying in and out of a host of airports in the Northeast U.S.

Customers must travel by the end of the year if they change their flights, the airlines said. Flying as early as possible is likely the best bet with few seats available during the busy Christmas week.

Airlines for America, the industry lobbying group, expects carriers to fly a record 52.6 million people between Dec. 19 and Jan. 5, with this Friday and Sunday among the busiest days.

Airlines generally cancel flights ahead of time for major weather events in the forecast, like blizzards or hurricanes, to avoid planes, connecting travelers and crews from getting stranded and worsening disruptions.

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A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California. 

Kevin Carter | Getty Images News | Getty Images

Spirit Airlines CEO Dave Davis on Wednesday braced staff for more job cuts and said the carrier plans to slash its schedule in November to reduce costs weeks after declaring its second bankruptcy in less than a year.

The airline is planning its November schedule and Davis told employees in a memo, which was reviewed by CNBC, that they will see a 25% cut in capacity over 2024 “as we optimize our network to focus on our strongest markets.”

The carrier’s capacity was down a similar degree from when it came out of bankruptcy in March through the end of June, and the new cuts point to how the airline is thinking about its near-term schedule as it seeks to reduce costs. The struggling discount carrier is in negotiations with vendors and aircraft lessors, and is evaluating its fleet size, as it tries to shrink itself to find more stable footing, Davis said.

“These evaluations will inevitably affect the size of our teams as we become a more efficient airline,” Davis wrote in his note to employees. “Unfortunately, these are the tough calls we must make to emerge stronger. We know this adds uncertainty, and we are committed to keeping you as these decisions are made.”

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When asked how many of its employees would be affected, Spirit told CNBC in an email: “We have engaged our labor unions to discuss the impacts of the network and fleet adjustments on our Team Members, and we will share more as these discussions progress.”

The airline has already announced furloughs and demotions of hundreds of pilots. Some flights attendants have already taken voluntary unpaid leaves of absence.

“Although management has not yet indicated they will seek to make changes to our [collective bargaining agreement], our bankruptcy attorneys working alongside our AFA legal department are prepared for any next steps management may take,” Spirit flight attendants’ union, the Association of Flight Attendants-CWA, told staff in on Wednesday. “Again, this bankruptcy will be much more difficult than the last one and we must be prepared to act to protect our interests as Flight Attendants.”

Davis said the company is also planning to meet with the airlines’ union leaders in the coming weeks. The airline has already announced furloughs and demotions of hundreds of pilots. Some flights attendants have already taken voluntary unpaid leaves of absence.

Spirit, known for its bright yellow planes, low fares and myriad fees, had been successful but high costs, shifting travel preferences and increased competition from larger rivals threw the airline off course. A failed acquisition by JetBlue Airways left the carrier on its own.

When Spirit emerged from bankruptcy in March, its leaders were hoping to find more stable financial footing. But the carrier avoided big changes in the process and instead focused on a deal with its bondholders, which exchanged almost $800 million in debt for equity, and it was greeted after bankruptcy with persistently higher costs and weaker-than-expected domestic travel demand.

It reported that it lost nearly $257 million since March 13, after it exited Chapter 11, through the end of June.

Earlier this month, Spirit announced flight cuts to 11 destinations and said it wouldn’t start a 12th as planned, while competitors like United Airlines, Frontier Airlines and JetBlue Airways have unveiled plans for new flights to try to win over Spirit customers.

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Airspace over the Middle East on Monday afternoon EDT, according to FlightRadar24.

Courtesy: Flightradar24

Airlines diverted more flights in the Middle East on Monday after Iran’s armed forces said the country launched a missile strike on a U.S. military base in Qatar, as the region’s military conflict continued to disrupt flights.

More than 20 commercial aircraft bound for Doha, Qatar, diverted, while another four heading to Dubai in the United Arab Emirates turned around, according to aviation data firm Cirium. Meanwhile, flight-tracking platform Flightradar24 said airspace over the UAE was temporarily closed. Reuters reported that the island nation of Bahrain also closed its airspace temporarily.

Dubai-based Emirates said that some of its aircraft rerouted on Monday and told customers that some delays or longer flights are possible as it will operate its schedule as planned but with “flight paths well distanced from conflict areas.”

Air India said it has halted all flights in and out of the region and to and from the east coast of North America and Europe “until further notice.”

“Our India-bound flights from North America are diverting back to their respective origins and others are being diverted back to India or re-routed away from the closed airspaces,” Air India said in a post on X. “We request the understanding of all passengers who may be affected by this disruption that’s beyond an airline’s control.”

The carrier had previously announced some schedule cuts for enhanced safety checks after the deadly crash of one of its Boeing 787s shortly after takeoff from Ahmedabad in western India earlier this month. The cause of that crash is still under investigation.

British Airways said Monday it is canceling its Doha flights through Wednesday “following the latest developments.”

“Safety is always our highest priority,” it said. “We are contacting our customers to advise them of their options and will keep the situation under review.”

Flight patterns over United Arad Emirates.

Courtesy: Flightradar24

Earlier, major international airlines including Air France, Iberia, Finnair and others announced they would pause or further postpone a resumption of service to some destinations in the Middle East.

American Airlines had previously suspended its flights to Doha, and United Airlines had paused service to Dubai.

U.S. carriers had also suspended their Israel service after that country’s strike on Iran earlier this month.

The conflict in the Middle East has added to complications for airlines that have been dealing with restricted airspace since the Ukraine war began in 2022 and Russian airspace closed for many carriers.

Carriers have been periodically skirting parts of the Middle East because of security concerns, but closed airspace means longer, more expensive routes that require more fuel.

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Flight map over the Middle East as Iran launches retaliatory attacks on Israel at 19:19 UTC on June 13th, 2025.

Source: FlightRadar24

Airlines around the world canceled flights to Israel and were skirting a large swath of airspace in the Middle East on Friday after Israel’s overnight missile strikes on Iran. Iran later launched drones toward Israeli territory.

Delta Air Lines on Friday afternoon said it was suspending its service to Tel Aviv, Israel, until at least September, just weeks after resuming flights there. It had most recently resumed flights on May 20, and as of last week Delta had said it was planning to increase service to Israel later this year from New York to two daily nonstop flights, “responding to strong winter demand.”

United Airlines‘ Tel Aviv flights were halted through at least Saturday. Both carriers’ Tel Aviv-bound flights turned around over the Atlantic Ocean to return to the New York area after Israel’s strikes overnight. United put 26 of its crew members who were on layover in Israel on Israeli airline El Al to get back to the U.S., a spokesman said.

El Al has since suspended service.

“Following recent security developments and in accordance with the instructions from the state’s security and aviation authorities to close Israeli airspace, all EL AL and Sundor flights are suspended for the time being,” it said on its website.

The carrier said it won’t take bookings until at least the end of June and warned customers against going to Tel Aviv’s Ben Gurion Airport.

“For customers currently abroad, we recommend arranging accommodation until there is a change in security directives,” El Al said. “Flights that were en route to Israel have been diverted to land at various EL AL destinations.”

Israel closes its airspace and suspended flight operations at Ben Gurion International Airport in Tel Aviv, Israel on June 13, 2025.

Nir Keidar | Anadolu | Getty Images

Turkish Airlines and European budget carrier Wizz Air also suspended Israel flights. Germany’s Lufthansa said it was suspending Tel Aviv and Tehran service until July 31 and flights to Jordan and Lebanon until at least June 20. Emirates said it was canceling service from its base in Dubai to Iraq, Jordan, Lebanon and Iran.

Airlines offered travel vouchers and waived change fees to customers affected by the disruptions.

Escalating military conflicts in the Middle East and Ukraine have forced airlines to repeatedly take longer and more costly routes to avoid conflict zones.

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