Airlines are bracing for a $100bn hit on jet fuel costs as an Iran energy shock sends energy prices soaring. The warning comes from an industry body that tracks fuel expenses across global carriers, signaling a major financial squeeze for an already struggling sector.

Surging energy costs could halve airline profits this year, according to the industry assessment. Fuel typically represents 20-25% of airline operating expenses, making the sector particularly vulnerable to energy price volatility. The Iran-related shock adds fresh pressure to airlines still recovering from pandemic losses.

This cost surge arrives as carriers face mounting operational challenges, from labor shortages to supply chain disruptions. The fuel price spike threatens to derail recovery plans and force difficult capacity decisions. Airlines may need to raise fares or cut routes to offset the expense burden.

The warning underscores how geopolitical energy disruptions quickly translate into real-world business pain. Airlines will likely pass costs to consumers, potentially cooling post-pandemic travel demand while squeezing profit margins across the industry.